President Milei ‘Libra promotion’ controversy settled?… Despite conclusion of “no legal violation,” investor anger remains

The Argentine Cryptocurrency Industry Thrown Into Chaos By The Libra Incident (Source: CoinGape)

Regarding The Controversy Over President Javier Milei's Promotion Of The Cryptocurrency Libra, The Government's Anti-corruption Office Concluded That There Was No 'Legal Violation,' But The Repercussions In The Market And Politics Continue.

According To Bloomberg On The 7th (Local Time), The Argentinian Anti-corruption Office Announced That President Milei's Posting About Libra On Social Media X In February Was A Personal Action And Did Not Violate Public Office Ethics Regulations Or Federal Resources. Consequently, The Internal Investigation At The Government Level Was Officially Concluded. However, The Investigation At The Federal Court Level Is Still Ongoing.

The Controversy Was Sparked Right After President Milei Met With The Founders Of The Libra Token And Practically Started Promoting It. Afterward, The Price Of Libra Soared But Then Plummeted Due To A Massive Sell-off, Leaving Many Retail Investors With Significant Losses. Some Have Characterized This As A 'Pump And Dump,' Raising Suspicions That Milei And His Associates Might Have Known About It In Advance. President Milei Explained At The Time, 'I Only Helped The Company, It Was Not For Selling Purposes.'

After The Incident, The Argentine Government Urgently Established The 'Libra Investigation Task Force (UTI)' Via Presidential Decree, But It Was Dissolved In Just Three Months. The Official Reason For The Dissolution Of The Task Force Was 'Mission Accomplished,' But The Investigation Results Were Not Disclosed. This Intensified The Backlash From Investors Who Suffered Losses, Some Of Whom Claimed They Invested Believing Libra Was An Official Government Project.

There Was Also An Analysis Suggesting That The Libra Tokens Were Concentrated In A Few Wallets And These Wallets Were Empty Right After Milei's Post. Consequently, Suspicions About Insider Information Leaks And Insider Benefits Remain Unresolved.

The Argentine Congress Formed A Special Investigation Committee Comprised Of 28 Members In Response To The Controversy, But Hearings Are Delayed. In The Hearing Scheduled Last May, Key Figures Like Justice Minister Mariano Riborona And Economy Minister Luis Caputo Were Absent, Intensifying Criticism From The Opposition And Citizens.

Although The Government Has Drawn A Line Saying There Is No Legal Responsibility, The Political Responsibility Regarding The Nature Of The Incident And The Protection Of Victims Remains An Issue.