Javier Milei Cleared of Misconduct in LIBRA Crypto Endorsement Scandal

A significant controversy surrounding Argentine President Javier Milei’s social media activity has concluded one phase, with the nation’s Anti-Corruption Office clearing him of ethical misconduct. This decision follows a contentious social media endorsement that was linked to substantial investor losses in a cryptocurrency token, sparking widespread debate and scrutiny.

Official Exoneration and Rationale

The Anti-Corruption Office’s investigation focused on a social media post made by President Milei on February 14, where he publicly supported the LIBRA token. The oversight body concluded that this post was a personal act, entirely separate from any official government capacity or state resources. Officials determined that Milei’s X (formerly Twitter) account, active since 2015, primarily serves as a platform for his personal and political expressions, rather than for formal state announcements. The agency therefore ruled that the President was exercising his constitutional right to free speech.

Market Volatility and Public Fallout

Despite the official clearance, the incident had significant repercussions. The President’s endorsement initially propelled LIBRA’s market capitalization to an impressive $4 billion. However, this surge was short-lived, with the token’s value plummeting by 94%, leading to investor losses estimated at over $250 million. The rapid decline sparked an intense public backlash and prompted opposition lawmakers to call for Milei’s impeachment.

The controversy has also impacted public perception. Surveys indicate a decline in President Milei’s approval ratings, reportedly falling from 47% in November to 41.6% by March. Critics have openly questioned the thoroughness of the anti-corruption investigation, particularly after the President dissolved the task force initially appointed to probe the matter.

Ongoing Legal Scrutiny

While the Anti-Corruption Office has closed its file on the ethical inquiry, the LIBRA scandal is far from over. A federal court is conducting its own independent investigation into the matter. The full extent of the fallout and its lasting impact on President Milei’s public standing remain to be seen as the legal proceedings continue.