8-6-2025 – Argentina’s President Javier Milei has been cleared of breaching public ethics laws following his controversial endorsement of the Libra cryptocurrency, a digital token that soared to dizzying heights before plummeting spectacularly in February. The nation’s Anti-Corruption Office (OA) concluded that Milei’s promotion, made via his personal X account, was a private act devoid of public resource allocation or institutional backing, thus falling outside the realm of official misconduct.
The saga, branded “Cryptogate” by Argentina’s press, erupted when Libra’s market value, once exceeding $2 billion, collapsed by 90%, leaving investors reeling. Milei, who had championed the cryptocurrency as a lifeline for small businesses and startups, swiftly removed his promotional post as the token’s value cratered. The fallout sparked outrage, with opposition leaders clamouring for his impeachment and aggrieved investors, represented by lawyers, launching lawsuits to recoup their losses. A class action suit, drawing plaintiffs from Argentina, the United States, and the United Kingdom, continues to wind through the courts, while a separate federal criminal investigation remains active.
At the heart of the controversy lies Milei’s meeting on 30 January with Hayden Davis, a figure linked to Libra’s creators. The OA report clarifies that Davis, introduced by representatives of KIP Protocol as a project partner, holds no ties to the Argentine government. Adding to the intrigue, two of Davis’ digital wallets, holding $57.6 million in USDC, were recently frozen by Circle under an order from the U.S. District Court in the Southern District of New York.
Milei himself prompted the OA’s probe, seeking clarity on whether his actions, or those of any government official, constituted improper conduct. The investigation’s findings underscore that his endorsement was a personal gesture, unlinked to any official policy or administrative directive. However, the dissolution of a prior investigative unit in May, shortly after a judge requested access to Milei’s and his sister’s bank records, has raised eyebrows. The government maintains that the unit’s work was concluded and passed to the public prosecutor’s office.
