Argentina anti-corruption office clears Javier Milei in Libra crypto promotion scandal

Argetina's Anti-Corruption Office (OA) said that the country's President, Javier Milei, was acting in a personal capacity when he promoted the Libra ($LIBRA) cryptocurrency, which dramatically rose and fell in a widely-publicized event in February, thus concluding he did not break the country's public ethics laws. 

Milei originally promoted the Libra cryptocurrency from his personal X account as a way to support small businesses and startups in Argentina, but deleted the post after the token crashed 90% from its top market cap of over $2 billion. The resulting scandal, dubbed "Cryptogate" by local media, led to calls for Milei's impeachment by opposition political figures and spurred lawsuits from lawyers in the country, representing investors who lost money. 

Milei requested the OA investigation to "determine whether there was improper conduct on the part of any member of the National Government, including the President himself," Milei's office announced at the time. 

"In short, [Milei's promotional post], which is not connected to administrative acts, has no allocation of public resources, or institutional support, should be interpreted as an act of individual or private communication that has not generated any official public policy direction of any kind," a translation of the OA's report states. 

A previous investigation unit was dissolved by Milei in May, shortly after a judge asked to see the President's bank records, along with those of his sister, who had some engagement with the creators of Libra, including Hayden Davis. Milei's government indicated that the investigation unit's work was completed and forwarded to the public prosecutor's office. 

While the OA probe's conclusion marks the end of the administrative investigation, a federal criminal court's investigation remains ongoing, and a separate class action suit with plaintiffs from Argentina, the U.S., and the U.K. is also making its way through the courts. 

Two of Davis' wallets, containing $57.6 million in USDC, were recently frozen by Circle following an order from the U.S. District Court in the Southern District of New York. Davis first met with Milei on January 30, the report reveals. 

"Mr. Davis had and has no ties to the Argentine government and was presented by KIP Protocol representatives as one of their partners in the project," the report states.