Argentina Clears President Milei Over LIBRA Memecoin Promotion Scandal

Argentine President Javier Milei has been cleared of any misconduct related to his controversial promotion of the Solana-based memecoin LIBRA earlier this year. According to a Friday resolution by Argentina's anti-corruption office, Milei made the endorsement in his capacity “as an economist and not a public official,” the Buenos Aires Herald reported.

The post, made via Milei’s personal X (formerly Twitter) account in February, was said to support LIBRA as a potential tool to help small and medium-sized businesses in Argentina raise capital. The anti-corruption office, led by Alejandro Melik, noted that the account predated Milei’s presidency and even his term as a national deputy.

Following Milei’s endorsement, LIBRA’s market capitalization soared to approximately $4.5 billion. However, after he deleted the post hours later—claiming he was unaware of the full details of the project—the token plunged by 90%, erasing over $4 billion in value.

Blockchain analytics firm Nansen revealed that 86% of traders suffered losses totaling $251 million during the crash, while a minority profited by about $180 million.

The controversy deepened after leaked text messages showed LIBRA co-creator Hayden Davis allegedly boasting about his influence over President Milei due to financial payments made to Karina Milei, the president’s sister and a key advisor.

Despite the financial fallout and ethical concerns, the government concluded that Milei’s actions did not violate any official codes, emphasizing the separation between his personal commentary and presidential duties.

This incident highlights the growing risks of crypto endorsements by influential figures and the regulatory gray areas in politically sensitive markets like Argentina.