Milei Shuts Crypto Scandal Unit as $LIBRA Probe Fuels Outcry

• Milei dissolved $LIBRA probe unit despite no public findings, sparking outcry over opacity.
• $LIBRA crash cost investors $250M after Milei’s promotion, prompting legal investigations.
• Critics say UTI shutdown aims to shield Milei amid judicial and congressional scrutiny.

President Javier Milei has abruptly shut down a government unit investigating his administration’s ties to the $LIBRA cryptocurrency scandal, raising new concerns about transparency and political accountability in Argentina. 

The special unit, formed just three months ago, was tasked with examining fraud and misconduct allegations linked to the memecoin’s rapid rise and crash, which left retail investors with an estimated $250 million in losses. 

Milei, who had personally promoted the coin on social media, now claims the unit completed its objectives. However, critics argue the move appears premature and politically motivated, as no public findings have been released.

Scandal That Shook Argentina’s Crypto Sector

The Investigative Task Unit (UTI) was formed on February 19, just days after the $LIBRA token was launched on February 14. At the time, President Milei promoted the coin on social media, and hailed the coin as a private initiative to boost Argentina’s struggling economy. He encouraged investment, claiming it would support small businesses and entrepreneurs.

However, within hours of Milei’s endorsement, $LIBRA surged in value before crashing by nearly 90%. Industry experts labeled the situation a “rug pull,” a scheme where developers abandon a project after collecting substantial funds. Over $4.5 billion moved through the coin, with thousands of investors blindsided by the sudden drop.

Milei later distanced himself from $LIBRA, denying any involvement in its structure or operations, despite his earlier public endorsement.

Related: Argentina Seeks Interpol Red Notice for LIBRA Crypto Scandal Figure

Decree Sparks Backlash and Raises Questions

Decree 332/2025, co-signed by Justice Minister Mariano Cúneo Libarona, announced the dissolution of the UTI. It stated that the unit had fulfilled its task by forwarding collected information to the Public Prosecutor’s Office. Yet, the lack of publicly available findings has raised eyebrows across the political spectrum.

Notably, the decree followed pressure from lawmakers who recently established a congressional commission to independently examine the matter. Judge María Romilda Servini is now leading a parallel judicial investigation into Milei’s potential role in the scandal. Additionally, class-action lawsuits have emerged in the United States accusing the president of deceptive promotion and negligence.

Silence From Prosecutors, Watchdogs as Scrutiny Grows

The Public Prosecutor’s Office has yet to release any conclusions regarding the $LIBRA affair. Furthermore, local reports suggest investigations are still active within the Anti-Corruption Office, the Central Bank, and the National Securities Commission. 

Related: Vitalik Buterin: Argentina Crypto Community Strong Despite Meme Coin LIBRA Crash

María Florencia Zicavo, a close ally of Justice Minister Cúneo Libarona, led the now-dismantled unit. Critics argue the timing of the shutdown, amid ongoing inquiries, signals a deliberate attempt to stifle scrutiny and protect political interests.