Argentina’s President Javier Milei has been cleared by the country’s Anti-Corruption Office in the controversial LIBRA memecoin scandal that eroded millions of dollars in investors’ wealth.
What Happened: The anti-corruption office concluded that Milei was acting in “personal capacity” when he promoted the Solana (CRYPTO: SOL)-based cryptocurrency via his X post and “did not violate” the the Public Ethics Law that governs public officials in the country, according to a translated statement.
“That, in summary, said post, not connected with administrative acts, without allocation of public resources, nor institutional support, should be interpreted as an act of individual or private communication that has not generated an official direction of public policies of any kind.”
See Also: White House Says Gold Reserves May Be Used to Purchase Bitcoin
Why It Matters: This scandal has been a significant point of contention in Argentina’s political landscape. In April, Argentina’s Chamber of Deputies approved a probe into the scam-tainted token. The lower house voted in favor of three draft resolutions, including the creation of an investigative commission, the questioning of executive branch officials, and a request for information from the government.
However, last month, the Argentine government officially disbanded the Unidad de Tareas de Investigación, a special unit formed to examine Milei’s alleged connections to the controversial meme coin, after the unit concluded its inquiry and submitted its findings to the public prosecutor’s office.
Milei publicly endorsed the LIBRA token in February, causing it to gain billions in market capitalization, only to crash 90% within the next few hours. As of this writing, the token was down 99% from its peak.
The crash sparked allegations of a rug pull, with a renowned Argentine lawyer demanding the international arrest of Hayden Davis, a U.S.-based cryptocurrency entrepreneur allegedly involved in the token launch.
Milei said that he never promoted the coin, and anyone who invested in the coin did so voluntarily.
Benzinga Note: Investing in meme coins is highly speculative and involves significant risk. Meme coins often lack intrinsic value and are driven by market sentiment, social media trends, and speculative trading
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
