Michaela
Argentine President Javier Milei has been cleared of any misconduct by the country’s federal anti-corruption office following an investigation into his February endorsement of the Libra token.
A recent resolution from the office determined that President Milei’s public endorsement of the Libra token was made in a personal capacity and did not involve the use of state resources. The federal anti-corruption office, which operates under a national government ministry, also concluded that Milei’s post on X promoting the token did not breach any federal ethics regulations applicable to public officials.
Despite the anti-corruption office’s findings, a separate investigation by a federal criminal court into President Milei’s endorsement of the Libra token is still underway.
The Libra token, developed by Delaware-based venture capital firm Kelsier Ventures, was officially launched on February 14. Soon after its debut, President Milei shared a post referencing the token on his personal X account.
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In his X post, President Milei defined it as an endeavor to boost Argentine economic expansion by assisting startups and small enterprises with private investment made possible by blockchain technology. He also characterized the Libra token as a legitimate economic initiative and included its blockchain contract address in his social media post to signal his endorsement.
Within an hour of President Milei’s social media endorsement, the value of the Libra token spiked from nearly zero to around $5 per unit, briefly pushing its market capitalization to an estimated $4.5 billion.
The surge in Libra’s value was swiftly followed by a sharp downturn, after the token’s founders, who reportedly held around 70% of the total supply, sold off their assets at peak valuation. The large-scale liquidation caused the token’s price to plummet by 85% within hours, resulting in estimated investor losses ranging from $100 million to $250 million.
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In February, President Milei was hit with criminal fraud allegations and calls for impeachment after publicly backing the Libra token. Shortly after, Hayden Davis, CEO of Kelsier Ventures and co-creator of the token, alleged that he had paid Karina Milei, the president’s sister, in an effort to secure Milei’s endorsement ahead of Libra’s launch.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
