Coffee Break Newsletter Update: Argentine President Dissolves LIBRA Memecoin Probe, Raising Eyebrows After Bank Records Ordered Unsealed
Milei halts $LIBRA memecoin probe as his and his sister's bank records are unsealed. Discover what’s behind Argentina’s biggest crypto scandal.
Buenos Aires, Argentina🇦🇷 – Montevideo, Uruguay🇺🇾 / May 20, 2025
In a move that has sent shockwaves through Argentina's political and financial spheres, President Javier Milei has officially disbanded the Investigation Task Unit (UTI) that was probing the controversial $LIBRA memecoin scandal. The decision, formalized by decree and published on May 19th, comes just days after a judge ordered the unsealing of bank records belonging to President Milei and his sister, Karina Milei, as part of the ongoing judicial inquiry.
The $LIBRA scandal, dubbed "Cryptogate" by some, erupted in February when President Milei publicly promoted the Solana-based token on social media, suggesting it would foster economic growth by funding small businesses. The endorsement swiftly sent $LIBRA's market capitalization soaring to over US$4 billion, only for it to crash by more than 90% within hours, leaving thousands of investors with estimated losses of $250 million. Many have since alleged a "rug pull" scam, with accusations of insider trading and illicit fundraising.
The now-dissolved UTI was established in February, shortly after Milei's initial promotion, with the stated purpose of gathering information and coordinating with various government bodies like the Anti-Corruption Office and the Central Bank, both controlled by authoritarian Milei government.
However, critics are questioning the timing of its disbandment. The official decree states that the unit "has fulfilled its assigned task" of gathering information and forwarding it to the Public Prosecutor's Office.
Yet, no official findings or reports from the UTI have been publicly released, raising concerns about transparency and accountability.
This development closely follows a significant legal order issued by Judge María Romilda Servini, who is leading the judicial investigation into the $LIBRA affair. Judge Servini's order to unseal the bank records of President Milei and his sister, Karina Milei (who serves as his chief of staff), intensified scrutiny on the alleged links between high-ranking government figures and the memecoin's tumultuous launch and subsequent collapse. Reports have surfaced suggesting potential influence peddling and undisclosed payments.
While the executive branch's internal investigation through the UTI has concluded, other avenues of inquiry remain open. Over 100 criminal complaints alleging fraud and deceptive promotion have been filed against President Milei. Furthermore, the Argentine Congress established its own commission of inquiry in April, which has yet to begin formal proceedings.
The LIBRA saga has become a major political headache for President Milei, who campaigned on an anti-corruption platform. His government insists he had no advance knowledge of the project's details and merely shared it as an enthusiast of technological tools for financing entrepreneurs. However, the optics of dissolving an investigative unit just as judicial scrutiny deepens are undeniable.
The coming weeks will be crucial as judicial and congressional investigations continue to unfold. The public, and particularly those who lost significant funds in the $LIBRA crash, will be watching closely to see if the full truth behind this "Cryptogate" scandal ultimately comes to light.
As early as late February 26, we published one of the most investigative blogs of that period, in the form of 29 Q&As, which even then detailed the criminal machinations of the Argentine president and his immediate circle.
