President Milei Ends Probe into LIBRA Crash – And It’s Not Sitting Well
President Javier Milei has just dissolved the government unit investigating his involvement in the $250 million LIBRA memecoin crash, drawing massive backlash at home and abroad. Using Decree 332/2025, signed alongside Justice Minister Mariano Cúneo Libarona, Milei pulled the plug on the Investigative Task Force (UTI) — the same body he created after LIBRA’s collapse caused global losses and political shockwaves.
The official excuse? The UTI had “fulfilled its objectives.” But no findings were ever made public.
What Was LIBRA and How Did It Explode?
Back in February 2025, the LIBRA memecoin briefly caught fire after Milei himself hyped it on his X (Twitter) account. With a few bullish posts, the token soared to a $4.5 billion valuation — until it crashed in what’s now labeled as a rug pull.
- Insiders, including creator Hayden Davis, allegedly drained $99 million before vanishing.
- The fallout? $250 million in investor losses — with retail traders, including Argentinians, taking the biggest hits.
The UTI Investigation Was Never Really Independent
While the UTI was framed as a government-led investigation into Milei and his sister Karina Milei, critics say it was always flawed:
- It answered directly to the executive branch.
- It was run by María Florencia Zicavo, a political ally of the Justice Minister.
- Oversight by the Financial Information Unit was deliberately curtailed, raising questions about transparency from day one.
The timing of the shutdown — just as heat around the case intensified — has left investors and lawmakers furious.
International Fallout and Legal Trouble Ahead?
This isn’t just a domestic crisis. A class-action lawsuit has already been filed in the United States, accusing Milei of:
- Deceptive promotion
- Negligence
- And “legitimizing” LIBRA with his office and reputation
The LIBRA implosion is now viewed as a crypto cautionary tale: what happens when heads of state start mooning tokens with no regulatory checks.
It’s Not Over Yet
Although the UTI is gone, the case is now in the hands of Argentina’s Public Prosecutor’s Office — and a parliamentary committee has also been established. Still, no formal proceedings have begun, and observers are skeptical about political will to pursue the matter further.
As Argentina grapples with economic chaos and political volatility, the LIBRA saga has blurred the line between influencer culture and presidential power — with devastating financial consequences.
