Argentina Dismantles Investigative Task Force into President Milei’s Libra Token Scandal

The Argentine government has dismantled the Investigative Task Force probing the Libra crypto scandal and its potential ties to President Javier Milei. This move, formalized by decree 332/2025, follows a three-month investigation into a rug pull that led to a $4.4 billion loss in market cap for the Libra coin. President Milei and his sister Karina face allegations of receiving undisclosed payments from the project, sparking ongoing judicial investigations.

• Investigative Task Force dismantled by decree 332/2025
• Libra scandal led to $4.4 billion market cap loss
• President Milei promoted Libra before rug pull
• Karina Milei alleged to receive undisclosed payments
• Ongoing investigations by Judge Servini and Anti-Corruption Office

Background of the Scandal

The Libra scandal erupted when the developers, including head developer Hayden Davis, executed a rug pull—a term used when developers suddenly abandon a project and take investors’ money. Davis and other insiders withdrew a staggering $194 million from the project’s liquidity pools, causing the coin’s value to plummet. This scheme targeted experienced crypto users, as participating in Libra required advanced technical knowledge and was built on the Solana blockchain, known for lower security and reduced operating costs.

President Javier Milei’s involvement came under scrutiny after he promoted the Libra token on his X account just before the rug pull, leading to speculation about his prior knowledge of the scheme. This promotion saw the token’s market cap peak at $4.6 billion before crashing to $162 million, leaving approximately 44,000 to 74,000 investors out of pocket by an estimated $250 million.

The Investigation

The Investigative Task Force, established on February 19, 2025, was tasked with delving into Milei’s links to the scandal. However, on May 19, 2025, President Milei and Justice Minister Mariano Cuneo Libarona signed Decree 332/2025, dissolving the task force and forwarding its findings to the Public Prosecutor’s Office. The task force concluded that the investigation was complete, leaving the decision to pursue the case further in the hands of the prosecutors.

Parallel to this, Judge Maria Romilda Servini is leading an investigation into potential fraud and misconduct by President Milei and his sister Karina, who serves as the Secretary General of the Presidency. Allegations suggest that Karina received undisclosed payments from the Libra project within days of the rug pull, raising questions about an attempt to influence the president.

Political and Economic Context

The Libra scandal occurs against Argentina’s backdrop of economic instability and historical issues with corruption. The involvement of high-profile political figures like President Milei and his sister adds complexity to the case, challenging the country’s justice system to maintain transparency and accountability. This situation has led to political controversy, with the main opposition block, Union for the Homeland, proposing articles of impeachment against Milei. The Socialist Party and Workers’ Left Front have also taken actions against him, though these initiatives have not progressed due to insufficient support.

Implications for Crypto and Governance

The Libra scandal has far-reaching implications for the global crypto community and trust in cryptocurrencies. The targeted nature of the scam, requiring technical knowledge, highlights the vulnerabilities even experienced users face. Moreover, the scandal tests the integrity of Argentina’s governance, as the public watches closely to see how the justice system handles allegations against the President and his family.

Internationally, several law firms are preparing class-action lawsuits against Milei on behalf of foreign investors, accusing him of negligence and misleading promotion. These legal actions could set precedents for how governments and officials are held accountable for their roles in crypto-related scandals.

Counterpoints and Perspectives

While the dissolution of the task force raises concerns about a potential cover-up, some argue it reflects efficiency rather than obstruction. They suggest that the task force had completed its investigation and that the Public Prosecutor’s Office is now the appropriate body to continue the legal process. This perspective emphasizes the importance of trusting the judicial system to handle the case impartially.

However, critics contend that disbanding the task force prematurely could hinder a thorough investigation, especially given the high-profile nature of the individuals involved. They argue for continued scrutiny and transparency to ensure that justice is served and public trust is maintained. Discussions on platforms like Reddit reflect a variety of opinions on the disbandment and its implications.

Future Outlook

As the Public Prosecutor’s Office reviews the task force’s findings, the outcome of the investigations could have significant implications for both the crypto ecosystem and Argentine governance. If the allegations against Milei and his sister are substantiated, it could lead to political and legal repercussions, including potential impeachment proceedings and criminal charges.

The long-term effects on the crypto market may include increased scrutiny of blockchain security and more robust investor protections. For Argentina, the resolution of this case will be a litmus test for its commitment to transparency and the rule of law in the face of high-level corruption allegations. The legal actions against Milei are closely watched, and could influence future strategies to prevent similar incidents.

Key Takeaways and Questions

• What was the role of the Investigative Task Force in the Libra scandal?

  The task force was established to investigate the Libra scandal and any links to President Javier Milei, focusing on the President’s promotion of the coin and the subsequent rug pull by the project’s developers.

• Why was the Investigative Task Force dismantled?

  The task force was dismantled by decree 332/2025, signed by President Milei and Justice Minister Mariano Cuneo Libarona, stating that the investigation was complete and its findings were forwarded to the Public Prosecutor’s Office.

• What were the financial impacts of the Libra scandal?

  The Libra scandal resulted in a $4.4 billion loss in market cap for the Libra coin, with head developer Hayden Davis and other insiders withdrawing a total of $194 million from the project’s liquidity pools. Approximately 44,000 to 74,000 investors lost an estimated $250 million.

• What allegations are being made against Karina Milei?

  Karina Milei, President Milei’s sister and Secretary General of the Presidency, is alleged to have received undisclosed payments from the Libra project shortly before the scandal, suggesting an attempt to influence the President.

• What is the current status of the investigations into the Libra scandal?

  The task force’s findings have been handed over to the Public Prosecutor’s Office, which will decide whether to pursue the case. Judge Maria Romilda Servini is also investigating potential fraud and misconduct by President Milei and his sister, while the Anti-Corruption Office continues its investigation.

“The task force was tasked with investigating Milei’s links to the Libra scandal because the President promoted the coin just before the developers conducted a rug pull, withdrawing the project funds and crashing the price.”

“Decree 332/2025 stated that the investigation was complete and that the task force would forward its findings to the Public Prosecutor’s Office.”

“Internal documents suggest that the Libra project made undisclosed payments to Karina within days of the scandal to influence the president.”