- Javier Milei closed down the LIBRA investigation team despite mounting difficulty from opposition and new lawsuits.
- After Milei praised LIBRA, it lost nearly $4.4 billion in market value and prompted allegations of insider trading.
- A judge is reviewing Milei’s financial records while the evidence indicates insiders took money out of the accounts once the token’s value soared.
Javier Milei, President of Argentina, has closed down the Investigative Task Unit (UTI) in connection with the LIBRA cryptocurrency scam despite calls for more action from lawmakers and unresolved judicial issues. The legislation was put into place by a decree signed by Milei and Minister Cúneo Libarona on May 19.
Forming the task force was proposed in February, right after Milei advertised the LIBRA token on his X social media account. Following the news about the president’s position, LIBRA went as high as $5 and gathered the equivalent of nearly $5 billion before falling to zero.
According to reports, opposition groups are getting ready for a new inquiry into the scandal. Prosecutors are still investigating several topics, such as the financial connections between Milei, his sister, and the LIBRA team.
Pump-and-Dump Allegations Mount as Millions Lost
Libra’s sharp rise and plunge have been referred to by experts as the classic case of a pump-and-dump setup. According to the blockchain records, 15,000 wallets made a profit or a loss of over $1,000 trading LIBRA. Most of the wallets, amounting to 86% of the total, suffered net losses of $251 million.
Close to LIBRA’s peak, several developers decided to withdraw their assets from the project. According to reports, Hayden Davis is said to have taken $87 million out of the pools, while other team members pulled out another $107 million moments before the crash. LIBRA lost more than $4 billion from its market value within a few hours.
Milei has repeatedly said he did nothing wrong, stating in a televised interview that he only offered information about a tool for entrepreneurs. He claimed that he acted with good intentions and added that Argentinian investors were very little affected. His statement was that most victims were from the U.S. and China.
New Legal Action Targets Milei and LIBRA Insiders
Even after Milei tried to settle the issue, there is still a lot going on legally. A federal judge has required that the accounts of Milei and his sister be made public. It’s also reported that the accounts of LIBRA’s co-founders have been blocked.
According to the video in question, the mother and sister of one co-founder allegedly cleaned up safe deposit boxes just after Milei made his post. The findings are now part of a broader investigation into whether the promotion happened as some investors withdrew their holdings.
Although the government insists that the task force did what it was supposed to, concerned individuals feel that important information has not been reviewed and no one has been held accountable. The damaged trust in the public has also reduced Milei’s popularity inside Germany. The data shows that more than half of Argentinians have lost trust in the president because of his connection to the mismanaged crypto token.
