Argentina Drops Criminal Probe Into Milei Over LIBRA Memecoin Collapse
Argentine prosecutors closed a criminal investigation into President Javier Milei tied to the LIBRA memecoin crash, ending a high-profile political and legal controversy.
Argentina's judiciary has closed a criminal investigation into President Javier Milei stemming from his promotion of LIBRA, a memecoin that collapsed shortly after he publicly endorsed it, according to a report from CoinDesk. The decision marks a significant legal reprieve for the libertarian leader, who faced intense scrutiny over whether his endorsement constituted fraud or market manipulation.
The LIBRA episode drew international attention earlier this year when Milei promoted the token on social media, triggering a rapid surge in price followed by an equally swift crash that wiped out millions of dollars in retail investor holdings. Critics alleged that insiders had used the president's platform to orchestrate a classic pump-and-dump scheme, while Milei's allies maintained he had no knowledge of any coordinated manipulation and was acting in good faith to promote economic activity.
Read more Trump Administration Weighing Mass Pardons for Junior Staff →
The dropping of the probe does not necessarily settle the broader political fallout. Milei, an outspoken advocate of cryptocurrency and economic deregulation, built much of his political identity on dismantling Argentina's legacy financial institutions. His association — however brief — with a failed speculative token complicated that narrative and handed domestic opponents a potent line of attack at a delicate moment in his reform agenda.
The case also underscores the regulatory vacuum that continues to define the global memecoin market. Unlike securities or even major cryptocurrencies, memecoins operate in an arena with virtually no investor protection infrastructure, making it exceptionally easy for high-profile endorsements to move markets and exceptionally difficult for prosecutors to prove criminal intent when those markets subsequently implode.
Whether the legal closure translates into political closure remains an open question as Milei pushes forward with his sweeping austerity program. Continue reading at CoinDesk.
