Argentinian President Milei Cleared in LIBRA Token Ethics Probe
- President Milei cleared in LIBRA ethics probe.
- LIBRA token saw a dramatic market cap change.
- No broad crypto market effects confirmed.
The ruling affects investor confidence and regulatory scrutiny in crypto assets, highlighting the limitations of governmental oversight when public figures engage in private crypto promotions.
President Milei Cleared in Investigation
The Anti-Corruption Office (OA) in Argentina cleared President Milei after an investigation into his promotion of the LIBRA token. President Milei’s personal promotion led to significant market movements but not ethical violations as per the OA.
President Milei requested the investigation to assure public transparency. The OA found no public resources or institutional backing were used, categorizing the post as a private communication, not as an official policy action.
Market Impact of the LIBRA Token
The LIBRA token initially surged to a market cap of over $2 billion due to high-profile attention. This was followed by a dramatic 90% crash, severely impacting retail investors in Argentina who suffered substantial financial losses.
These events raised issues related to market manipulation and insider profit, given the few wallets controlling LIBRA supply. Calls for regulatory reform have emerged to prevent similar situations from occurring in the future.
Call for Regulatory Changes
Regulatory bodies and investigators noted this situation’s particularly high impact due to the involvement of a sitting president. The retail investor losses highlight the vulnerability of the sector to influential endorsements.
Future regulatory actions might focus on setting clearer parameters for public officials engaging with crypto. This event underscores the need for greater industry transparency and has wider implications for market trust and investor protection.
“I requested the OA investigation to determine whether there was improper conduct on the part of any member of the National Government, including the President himself.” – Javier Milei, President of Argentina
