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Argentina’s Anti-Corruption Office has officially cleared President Javier Milei of any wrongdoing related to his promotion of the LIBRA token, amidst ongoing international investigations and investor backlash.
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Despite the clearance in Argentina, U.S. authorities continue probing potential market manipulation, while collective lawsuits from investors in multiple countries highlight the broader impact of LIBRA’s dramatic price collapse.
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According to COINOTAG, President Milei emphasized, “The Unidad de Tareas de Investigación (UTI) has accomplished its objective,” signaling a potential turning point in regulatory scrutiny over political endorsements of cryptocurrencies.
Argentina clears President Milei in LIBRA token promotion case; U.S. investigations and investor lawsuits continue amid LIBRA’s significant market crash.
Argentina’s Anti-Corruption Office Clears President Milei in LIBRA Promotion Controversy
In a decisive ruling, Argentina’s Anti-Corruption Office determined that President Javier Milei’s promotion of the LIBRA token was a private act that did not involve misuse of public resources or official influence. This conclusion comes after intense public scrutiny following the token’s meteoric rise to a $2 billion valuation and subsequent collapse by 90%, which caused substantial losses for investors. The office’s investigation focused on whether Milei’s actions breached administrative regulations, ultimately finding no evidence of wrongdoing. This ruling, however, does not halt ongoing investigations abroad, particularly in the United States, where federal authorities are examining potential market manipulation linked to the token’s volatility.
Ongoing U.S. Investigations and Global Investor Lawsuits Highlight Broader Implications
While Argentina’s domestic probe has closed, the LIBRA saga continues to unfold internationally. The U.S. Federal Criminal Court is actively investigating allegations of market manipulation, with investors from the U.S., UK, and Argentina filing collective lawsuits seeking accountability for their losses. These legal actions underscore the complexities of regulating cryptocurrencies that intersect with political figures. Notably, other major cryptocurrencies have remained largely unaffected by the fallout, suggesting the controversy is isolated to LIBRA’s unique circumstances. Industry analysts warn that the ongoing investigations could prompt tighter regulations on how public officials engage with crypto promotions, potentially reshaping market oversight frameworks.
LIBRA Token’s Market Collapse: Investor Impact and Regulatory Outlook
The LIBRA token, a Solana-based memecoin, experienced a dramatic market trajectory following President Milei’s promotion. After peaking at a $2 billion market cap, the token’s value plummeted by 90%, eroding investor confidence and triggering widespread financial losses. As of June 8, 2025, LIBRA’s market cap stands at approximately $8.32 million, with a circulating supply exceeding 256 million tokens. Despite a recent 26.10% price increase over the past week, the token remains down 60.02% over three months, reflecting ongoing volatility. This price behavior has intensified calls for enhanced regulatory scrutiny and investor protections, particularly regarding endorsements by influential figures.
Potential Regulatory Reforms and Lessons from the LIBRA Case
Research from Coincu highlights that the LIBRA incident may serve as a catalyst for regulatory reform, especially concerning the promotion of cryptocurrencies by public officials. Historically, investigations into market manipulation involving political actors have led to significant changes in market governance and transparency standards. President Milei’s statement, “The Unidad de Tareas de Investigación (UTI) has accomplished its objective,” suggests a recognition of the need for clearer guidelines and accountability. Moving forward, regulators worldwide may implement stricter disclosure requirements and conflict-of-interest policies to prevent similar controversies and protect investors.
Conclusion
The clearance of President Javier Milei by Argentina’s Anti-Corruption Office marks a significant development in the LIBRA token controversy, yet it does not conclude the broader legal and regulatory challenges facing the cryptocurrency. Ongoing investigations in the U.S. and collective investor lawsuits emphasize the complexities of crypto market oversight, especially when intertwined with political endorsements. The LIBRA case underscores the urgent need for robust regulatory frameworks to ensure transparency and protect investors from market manipulation risks. As the crypto landscape evolves, stakeholders must remain vigilant and proactive in addressing these challenges to foster a more secure and trustworthy market environment.
