Key Takeaways
- Argentina’s Anti-Corruption Office (OA) has officially cleared President Javier Milei and former National Securities Commission advisor Sergio Morales of wrongdoing in the controversial $LIBRA cryptocurrency scandal.
- The OA determined Milei did not violate public ethics laws, asserting his promotion of the digital token occurred from his personal X (formerly Twitter) account, without using state resources or proving personal financial benefit.
- Despite the OA’s decision, opposition figures heavily criticize the ruling as politically motivated, while federal judicial investigations into the alleged fraud and financial activity related to $LIBRA continue independently in both Argentina and the United States.
Argentina’s Anti-Corruption Office (OA) has officially cleared President Javier Milei of any wrongdoing in the contentious $LIBRA cryptocurrency scandal, asserting that his promotion of the digital token did not violate public ethics laws. The decision, released on June 5th, also absolved Sergio Morales, a former advisor to the National Securities Commission (CNV), from any misconduct related to the alleged scheme.
The investigation by the OA, which operates under the Ministry of Justice, commenced on February 20th following a presidential decree, less than a week after Milei’s February 14th social media post promoting the $LIBRA memecoin. The token’s value subsequently surged to $5 before a dramatic collapse, leading to accusations of a pyramid scheme and significant losses for investors.
The OA’s resolution hinges on the argument that Milei’s actions were conducted from his personal X account, not in an official capacity. According to the document, “the use of social media by public officials, including those in the highest echelons of the State, does not in all cases imply the exercise of a public function.” The office stated that for an act to be considered official, it must involve a formal administrative order or the use of public resources. As no such use was found, and no personal benefit was proven, the OA concluded that Milei “did not infringe” the Public Ethics Law. The resolution further noted that Milei’s X profile identifies him as an “economist,” not a public official.
This interpretation, however, has drawn sharp criticism and raised questions. Opponents quickly pointed out that Milei’s X account displayed a “gray checkmark” at the time of the $LIBRA promotion, a verification status typically reserved for government or multilateral organizations. Furthermore, the OA’s investigation reportedly found no links between Milei, his sister Karina Milei, or presidential spokesperson Manuel Adorni, and key figures behind $LIBRA such as Hayden Davis of Kelsier Ventures, or entrepreneurs Mauricio Novelli and Manuel Terrones Godoy. This omission is particularly striking given that Milei previously taught a course on cryptocurrencies at NW Professionals, a school owned by Novelli. The OA’s report also stated that the “Viva la Libertad Project,” a speculative name for $LIBRA’s supposed aim to fund Argentine SMEs, was not officially registered with the Presidency.
Maximiliano Ferraro, a Buenos Aires deputy, vehemently condemned the OA’s decision. “The OA closed the investigation… not because there are no links. Not because there are no consequences. It closed it because it decided to dictate what the President wanted,” Ferraro stated, adding, “The President can operate from his personal account, generate a financial impact, benefit a private environment… and then say it wasn’t him acting as President. That it was ‘another’.”
Despite the OA’s clearance, the broader legal investigation into the alleged $LIBRA fraud continues independently within the federal judiciary. Federal prosecutor Eduardo Taiano has requested comprehensive phone records for Milei, Morales, Terrones Godoy, and Novelli as part of his probe. In a significant development, Taiano, alongside the specialized cybercrime unit UFECI, successfully requested the freezing of nearly 45 million USDC (a dollar-linked cryptocurrency) identified on the Solana blockchain in Argentina. This mirrors a prior order from U.S. District Judge Jennifer Rochon in New York, who directed Circle Internet Group to freeze approximately $58 million in USDC linked to the alleged fraud, underscoring the international scope of the investigation.
The decision regarding Sergio Morales also confirmed that he did not violate the Public Ethics Law, despite his association with Terrones Godoy, a partner of Novelli in Tech Forum S.R.L., an event where $LIBRA was promoted. The OA concluded that Morales did not deviate from the law’s requirement to abstain from matters linked to his past three years of corporate participation.
The OA’s resolution effectively separates Milei’s personal online activity from his public duties, a distinction that remains a subject of intense debate and scrutiny in the evolving landscape of digital communication by high-ranking officials.
Read More:
https://www.clarin.com/politica/escandalo-cripto-oficina-anticorrupcion-desliga-milei-dice-cometio-delito-promocionar-libra_0_TlNcXeumXV.html
https://www.lanacion.com.ar/politica/segun-la-oficina-anticorrupcion-milei-no-infringio-la-ley-de-etica-publica-en-el-caso-libra-nid07062025/
https://www.ambito.com/politica/la-oficina-anticorrupcion-desligo-javier-milei-del-escandalo-libra-n6154135