Argentina Clears Milei in Libra Token Ethics Probe, Criminal Investigation Continues

Argentina’s anti-corruption authority has cleared President Javier Milei of any ethical misconduct in relation to his public endorsement of the cryptocurrency token Libra, marking a significant moment in the country’s evolving crypto oversight landscape. The decision comes after an administrative review found that Milei's February posts about Libra were made in a personal capacity and did not involve the use of state resources.

This distinction proved decisive. By determining that Milei acted outside his official presidential role, the office concluded there was no breach of public ethics laws. However, the ruling does not absolve the president from all scrutiny: a separate federal criminal investigation remains active, probing potential violations of securities laws and allegations of market manipulation.

The controversy began earlier this year when Milei’s endorsement of the Libra token—developed by Kelsier Ventures under the project name “Viva La Libertad”—sparked a meteoric price rise. Within minutes of Milei's online praise, the token's value surged to nearly $5, pushing its market cap to about $4.5 billion. This explosive growth was short-lived. As the founders, who reportedly held around 70% of the token supply, liquidated their positions, the token’s value plummeted, erasing between $100 million and $250 million in market capitalization.

The anti-corruption office’s findings underscore a key nuance in Argentina’s oversight framework: administrative reviews assess ethical propriety, while criminal courts evaluate legal violations. This dual-path accountability model ensures that political figures like Milei can be held to both ethical and legal standards independently.

President Milei has defended his actions by framing them as part of his broader agenda to promote blockchain innovation and economic modernization in Argentina. He maintains that his support for Libra was not financial advice but rather an effort to highlight digital assets' role in fostering entrepreneurial ventures.

Still, the Libra case has amplified calls for more robust cryptocurrency regulation. Analysts argue that the incident exposes the need for clearer rules around public endorsements, asset transparency, and investor protections in the digital finance space.

As the criminal investigation proceeds, its findings could set lasting precedents for how Argentine officials interact with emerging financial technologies. For now, the ethics clearance provides some political relief for Milei, but the legal dimension remains a potent and unresolved chapter in this complex affair