The decision, made public on June 5, determined that Milei’s mention of the token earlier this year didn’t involve official resources or represent an abuse of office. His February 14 post about LIBRA on X (formerly Twitter) was categorized as a personal expression, not a presidential endorsement.
That hasn’t stopped the political fallout. After the token spiked in value—briefly hitting a $4 billion market cap—and then tanked by more than 90% in hours, many accused Milei of fueling a speculative frenzy that left investors nursing heavy losses. An estimated $251 million was wiped out, mostly affecting retail buyers.
Critics in Congress were quick to react. Impeachment calls were floated, with opposition leaders accusing the president of encouraging a digital pump-and-dump. The scandal, while unlikely to result in legal consequences for Milei, has taken a toll on his popularity. A March poll showed support for his administration dropped six points compared to November.
The situation is still developing in court. A federal criminal investigation remains active, probing whether there was coordinated manipulation behind the LIBRA token’s boom and bust. Some lawmakers have questioned the transparency of that investigation, claiming it’s being quietly swept under the rug.
Adding fuel to that theory, Milei recently issued a decree dismantling the investigative task force originally set up to look into the incident.
So far, no one in the administration has faced formal penalties.
Behind the LIBRA launch are Hayden Davis of Kelsier Ventures and Julian Peh of KIP Protocol—figures now under scrutiny after blockchain data revealed their firms may have pocketed close to $100 million during the token’s meteoric rise. Davis has denied personal holdings or plans to offload tokens.
For most retail traders, however, the outcome was harsh. According to Nansen, over 86% of wallets that made notable trades in LIBRA ended up underwater.
Milei, for his part, continues to downplay the situation, stating that he merely
“shared something interesting”
and never promoted the asset.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
