Argentina’s Milei Shuts Down Crypto Scandal Probe Amid Libra Token Fallout

Argentina’s President Javier Milei has abruptly terminated the official investigation into the nation’s unfolding Libra crypto scandal, despite growing public pressure and legal scrutiny.

In a controversial decree signed by Milei and Justice Minister Mariano Cúneo, the central government dissolved the special unit created to investigate the now-infamous Libra memecoin, which Milei himself had promoted just months ago. The announcement cited that the task force had “fulfilled its purpose” — a claim that has since ignited backlash from both lawmakers and the crypto community.

From Viral Surge to Scandal

The scandal began on February 14, when President Milei took to X (formerly Twitter) to promote the Libra token. The endorsement triggered a meteoric rally, catapulting Libra’s market cap to $4.5 billion in a matter of hours. However, the token crashed just as quickly, losing over 97% of its value, and now sits around $14 million.

While retail investors suffered huge losses, insiders reportedly cashed out more than $100 million, prompting accusations of coordinated pump-and-dump activity.

Opposition Lawmakers Slam the Cover-Up

Critics argue that the so-called UTI (Unidad de Tareas de Investigación) was always a sham.

“The UTI was always a front,” said Julia Strada, an opposition lawmaker, on X. “And they shut it down anyway.”

Congressman Estebán Paulon of Santa Fe echoed the sentiment:

“Surprised? Said no one ever. The mask has slipped. They are experts in impunity.”

Federal Judge Launches Deeper Investigation

Despite the shutdown of the government task force, the legal case is far from over.

Federal Judge María Servini, who is independently handling the case, has ordered banks to unseal financial records tied to several high-profile individuals — including President Milei and his sister, Karina Milei. The judge is seeking transaction data, securities records, and any unusual asset accumulation dating back to 2023.

Karina Milei is under scrutiny for allegedly accepting bribes to facilitate private meetings with the president. One of the individuals she reportedly granted access to is Hayden Davis, identified as the mastermind behind the Libra token project.

Judge Servini’s investigation now includes three central figures linked to Libra:

• Mauricio Novelli
• Manuel Terrones Godoy
• Sergio Morales, a current government official.

“The government is doing everything it can to prevent the truth from coming out,” said Maximiliano Ferraro, a lawmaker from Buenos Aires.

A Blow to Argentina’s Crypto Ambitions?

The scandal has rocked Argentina’s vibrant crypto industry, raising serious concerns about regulatory integrity and political interference. As judicial proceedings unfold, the tension between government transparency and crypto adoption in the country is reaching a boiling point.