Argentina's Milei shuts down task force investigating LIBRA scandal

Argentine President Javier Milei has dissolved a task force established to investigate the fallout from LIBRA, the scandalous cryptocurrency project the head of state promoted on his social media channel before it crashed to zero. 

The Investigative Task Force (ITU) was dissolved via a May 19 decree signed by Milei and Justice Minister Mariano Cúneo Libarona, government documents revealed. 

“The Research Task Unit is dissolved” after completing its mandate, the translated version of the decree read.

The task force is being dissolved despite pressure from opposition groups, which are seeking to activate an investigative commission as soon as May 20, local media outlet Clarin reported. 

Government officials established the UTI on Feb. 19, days after Milei promoted LIBRA on his official X account.

His endorsement briefly sent LIBRA soaring from practically worthless to $5 a token and a nearly $5 billion market capitalization, before quickly crashing to zero in what appeared to be a classic pump-and-dump scheme. 

The fallout from LIBRA sparked allegations of insider trading and manipulation, with Milei caught in the crosshairs.

In addition to facing an investigation, Milei’s credibility suffered at home, with nearly 58% of Argentinians saying they no longer trust the president for his role in the scandal.

Related: Argentine President Javier Milei denies promoting failed LIBRA memecoin

In a televised interview on Todo Noticias, Milei denied any wrongdoing for promoting the project, claiming that he merely shared information about a project that sought to help entrepreneurs access funding options. 

“I saw a tool that could finance entrepreneurs, and I spread the word. I acted in good faith and took a hit,” he said, according to a translation of the interview. 

Milei also downplayed investors’ losses, claiming that “at most” 5,000 people were affected — the vast majority of whom were Chinese and American. He claimed that only “four or five” Argentinans suffered losses. 

Nevertheless, blockchain data reviewed by Cointelegraph revealed that more than 15,000 wallets sold LIBRA at a profit or loss of more than $1,000. More than 86% of wallets reported a loss totaling $251 million. 

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