Argentina Disbands LIBRA Memecoin Probe Amid Mounting Questions Over President Milei’s Ties to Crypto Scandal

In a controversial move stirring public and political debate, the Argentine government has abruptly shut down the official task force investigating the LIBRA memecoin scandal—just days after a judge ordered the unsealing of President Javier Milei’s and his sister's bank accounts.

The announcement, made in a formal statement co-signed by President Milei and Justice Minister Mariano Cúneo Libarona, asserts that the unit “had fulfilled its purpose.” However, the timing has drawn widespread attention. The closure comes on the heels of a judicial push to probe the financial dealings of the president and his sister, Karina Milei, amid allegations of impropriety tied to the now-infamous Solana-based LIBRA token.

LIBRA, launched in February by U.S.-based Kelsier Ventures, initially surged to a $2 billion market cap after President Milei publicly promoted it on social media. He described the token as a tool to empower small businesses and drive economic innovation in Argentina, even linking to the token’s smart contract on Solana. The endorsement sparked interest, only for the coin to plummet more than 90% within days—raising red flags.

Complicating matters, Hayden Davis, who presented himself as a representative of LIBRA, alleged that he paid Karina Milei to secure her brother’s favorable view of the token. While the president later walked back his support, saying he had no prior knowledge of the project’s inner workings, questions remain over whether his statements helped artificially inflate LIBRA’s value.

"I’m not an expert," Milei said following the crash. "As a guy who’s a super technology enthusiast seeing the possibility of a tool to finance entrepreneurs’ projects, I spread the word."

He also downplayed the scandal’s impact on Argentina, noting that most investors were from the U.S. and China, with relatively few Argentines affected.

Nonetheless, judicial interest in the case has deepened. A judge has not only ordered the unsealing of the Mileis’ financial records but also previously moved to freeze the assets of three LIBRA co-founders. Prosecutors are reportedly reviewing security footage showing relatives of one co-founder allegedly emptying safe-deposit boxes shortly after the president’s promotion of the token.

The closure of the investigative unit raises fresh concerns about transparency and accountability at the highest levels of Argentina’s government—particularly at a time when public trust in digital assets and political leadership remains fragile.