- President Milei cleared of promoting LIBRA.
- Investigation found actions personal.
- Severe market impact with investor losses.
Javier Milei, President of Argentina, was cleared of ethics violations by the Argentine Anti-Corruption Office regarding his LIBRA promotion. The decision, made in Buenos Aires, identified his actions as personal.
The event underscores the impact of public figures on crypto markets and the risk of manipulative practices, affecting both market stability and investor confidence.
In February, Javier Milei mentioned the LIBRA token on X, causing a significant market reaction. Market cap surged before crashing, resulting in estimated losses of $251 million. The Argentine Anti-Corruption Office determined the post was from Milei’s personal capacity.
Alejandro Melik, head of the Argentine Anti-Corruption Office, led the investigation, concluding there was no misuse of public resources. The post was deemed personal, not an official act. LIBRA’s volatility highlighted vulnerabilities within crypto markets, especially with notable political affiliations.
Milei’s post resulted in LIBRA’s market cap reaching nearly $4 billion before a 94% crash. The case emphasizes the susceptibilities of crypto markets to influential endorsements, reflected in the drastic financial outcomes.
A federal criminal court continues to investigate potential market manipulation. Assets of Milei and his sister remain frozen, pending outcomes. Regulatory scrutiny persists, reflecting heightened oversight in the cryptocurrency sector.
“I didn’t promote the LIBRA memecoin but rather spread the word about it.” – Javier Milei, President of Argentina
Historical trends show similar disruptions caused by public figure endorsements in crypto. These patterns highlight risks of market manipulation and transparency issues within the cryptocurrency industry.
