The government in Argentina has abruptly ended the investigation into the controversial Libra cryptocurrency scandal, raising questions about transparency and accountability.
The probe was led by an internal task force formed just three months ago to examine the alleged market manipulation involving President Javier Milei and his sister Karina.
Despite growing public interest and complaints from retail investors, the unit was disbanded without a clear explanation.
The decision to close the Investigative Task Force (UTI) was signed by President Milei and Justice Minister Mariano Cúneo, with an official statement claiming the body had “fulfilled its purpose.”
No further details were provided to the public.
The closure effectively ends the government’s internal inquiry into the matter, even as the political fallout from the scandal intensified.
Opposition figures swiftly criticised the move, accusing the administration of protecting itself from scrutiny.
The Libra cryptocurrency, which Milei promoted on social media in February, experienced a rapid surge in value immediately after his endorsement on platform X.
The market value soared to approximately $4.5 billion before collapsing more than 97% within hours, leaving the coin’s price at around $14 million.
This volatility echoed classic pump-and-dump patterns, where a small group of insiders cash out at inflated prices, causing significant losses for ordinary investors.
Reports indicate that several wallets holding most of the Libra tokens were sold shortly after Milei’s post, which triggered the sharp price fall.
Numerous retail investors filed complaints alleging that government officials may have played a role in manipulating the market.
Some insiders reportedly made over $100 million in profits.
Local lawmakers dismissed the investigative task force as a façade.
Opposition lawmaker Julia Strada commented on X,
“[UTI] was always a face, they eliminated it anyway.”
She explained,
“They never gave us the results of the supposed Investigative Task Force (I asked for them through Congress). They never wanted to acknowledge what Novelli and Terrones Godoy are now finally admitting in court: that Hayden Davis committed fraud. (With them, with Karina, and with the President, of course.)”
Building on her earlier remarks, she further contended,
“Now they're eliminating the Investigative Task Force, the only body they said existed to investigate. It was always a stage set.”
Similarly, Congressman Estebán Paulon remarked,
“The masks surrounding the commitment to transparency are falling. Experts on impunity.”
These criticisms have added fuel to concerns that the government is deliberately hindering the uncovering of the truth.
Lawmaker Maximiliano Ferraro accused the administration of obstructing justice, saying,
“Once again, the government demonstrates that it is doing everything possible to prevent the true clarification of the facts.”
While the task force has been disbanded, the criminal investigation remains active under federal judge María Servini.
The judge has ordered banks to release financial records related to key figures involved in the case, including President Milei and his sister.
This data request covers banking transactions, securities holdings, and any unusual asset growth since 2023.
Karina Milei faces accusations of accepting bribes in exchange for granting access to President Milei, with Hayden Davis, identified as the architect behind the Libra project, among those allegedly involved.
Hayden Davis is an American cryptocurrency marketer and CEO of Kelsier Ventures, implicated in the $LIBRA cryptocurrency scandal for allegedly orchestrating a "pump and dump" scheme.
Other suspects named in the investigation include Mauricio Novelli, Manuel Terrones Godoy, and government official Sergio Morales.
The Libra scandal has cast a shadow over Argentina’s rapidly growing cryptocurrency sector.
The token’s initial hype and subsequent crash were covered internationally, shaking confidence in local crypto projects.
The abrupt end to the task force has led to uncertainty about how the government will regulate cryptocurrencies moving forward.
James Bosworth, founder of Washington-based risk consultancy Hxagon, offered a perspective on the timing of the shutdown.
“Milei is riding high right now. His effort to drop currency controls has gone about as well as hoped and the peso is stable. He just won a small election in the capital. There is no better moment for him to shut down this investigation, preventing bad info from being released right before the midterm elections later this year.”
Despite the controversy, Libra’s price rose to almost 300% following the announcement.
This may reflect speculation by investors hoping the coin could recover as the investigation fades from public view.
Before becoming president in 2023, Milei was already linked to crypto controversies.
Investors sued him in 2022 over a crypto platform he promoted that promised unusually high returns.
His political rise was built partly on addressing Argentina’s severe inflation, which he has made some headway on.
However, his public promotion of the Libra token has deepened divisions and raised serious questions about governance and ethics in the country’s financial ecosystem.
Argentinians are losing trust in President Javier Milei after his alleged involvement in the $4.6 billion Libra crypto scandal, with polls showing a drop in his approval rating. Despite this, his party still leads in election polls, though doubts about his leadership and economic policies are growing.
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