Argentina's Cryptocurrency Scandal Escalates: Investigation on the $LIBRA Collapse halted by Milei
ARGENTINEAN INVESTIGATION UNIT DISMISSED OVER CRYPTO COLLAPSE INQUIRY
Outcry over transparency and accountability has surfaced in Argentina's crypto sphere following the sudden disbandment of a special investigative unit examining the $LIBRA crypto crash. President Javier Milei's decision to dissolve the unit comes amid growing scrutiny, five months after Milei endorsement propelled the memecoin into circulation, only for it to crash spectacularly, causing massive losses for retail investors.
A Controversial Collapse
The $LIBRA token, promoted by Milei on social media as a private initiative to stimulate the Argentine economy, erupted onto the scene in February 2025. Its value skyrocketed immediately after Milei's endorsement, only to plummet by 90% within hours, erasing millions in investor wealth. Despite the dramatic collapse that followed, a reported $4.5 billion had transited through $LIBRA during its peak, with a potential $250 million in losses estimated [3, 4, 5].
An Abrupt Termination
Just days after the crash, Milei established an Investigative Task Unit (UTI) under the Ministry of Justice to analyze any alleged misconduct, collaborate with national regulators, and submit evidence to the courts. However, on May 20, Milei signed Decree 332/2025, co-signed by Justice Minister Mariano Cúneo Libarona, terminating the unit. The decree stated the UTI had "accomplished its designated mission" by submitting evidence to the Public Prosecutor's Office [4]. To date, no public findings have been shared.
Political Pressure and Legal Allegations
The closure of the unit takes place at a sensitive time politically. Judge María Romilda Servini is currently leading a separate judicial inquiry into Milei's possible complicity in financial malpractices. Additionally, the Central Bank has been instructed to divulge information regarding financial transactions involving both Milei and his sister Karina Milei, his Chief-of-Staff. Meanwhile, a class-action lawsuit has been filed in the United States against Milei, accusing him of deceptive promotion and negligence, claiming that investor trust was mostly reliant on Milei's public backing of the token [4, 5].
Inactivity Among Watchdogs
The dissolution of the UTI does not absolve other agencies from their responsibility to investigate further. Agencies such as the Anti-Corruption Office, the Central Bank, the Financial Intelligence Unit, and the National Securities Commission are still expected to continue their investigations [4]. However, the lack of progress and official silence from these bodies has intensified public distrust.
The Future Of Argentine Crypto
The $LIBRA episode is one of several crypto controversies to affect Latin American markets, as regional adoption grows. Questions regarding investor protection and government accountability have become more vocal as the industry evolves, placing Milei under one of his most significant political crises to-date.
Amid mounting pressure, transparency, and accountability are at the forefront of investor and lawmakers' demands. As the investigation intensifies, the disbandment of the $LIBRA probe may be the beginning of a broader political and legal storm.
Crypto trading and investing continue to be significant topics in Argentina, given the controversial collapse of the $LIBRA token. Despite the sudden disbandment of the special investigative unit tasked with examining the $LIBRA crash, other watchdogs like the Anti-Corruption Office, the Central Bank, the Financial Intelligence Unit, and the National Securities Commission are still expected to continue their investigations into any lapses, particularly in the areas of misconduct and financial malpractices. As the future of crypto in Argentina remains unclear, the emphasis on transparency and accountability in the crypto mining, trading, and finance sectors becomes even more crucial.
