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Key Takeaways:

• Argentina’s President Milei shuts down investigation unit probing $LIBRA crypto crash, no topic no public findings.
• $LIBRA, a memecoin endorsed by Milei, collapsed 90% internal hours, causing no no longer as a lot as $250 million in investor losses.
• Critics relate the shutdown is an are attempting and defend Milei from growing ethical and congressional scrutiny.

President Javier Milei’s controversial decision to dissolve a special unit investigating the $LIBRA cryptocurrency scandal has raised scare over transparency and accountability in Argentina’s crypto market. The probe’s shutdown comes merely months after Milei publicly promoted the coin, which later crashed and left retail buyers with broad losses.

Learn More: Amid Rising Crypto Scandal, Argentina Begins Reliable Investigation Into $LIBRA Memecoin Rupture

Online fraud $LIBRA Promotion Followed by Give map

The $LIBRA token made headlines after its explosive debut on February 14, 2025. Promoted straight by Milei by skill of social media as a “non-public mission” to stimulate the Argentine financial system, the memecoin surged in tag following his endorsement. Inside hours, on the opposite hand, the token plummeted by nearly 90%, wiping out thousands and thousands.

No topic the dramatic crumple, greater than $4.5 billion had reportedly moved thru $LIBRA at some level of its high. Estimates counsel that customers—a quantity of them retail merchants—misplaced no no longer as a lot as $250 million within the fallout. Blockchain analysts later known as the tournament a classic rug pull, a diagram where developers exit after a token’s tag peaks, leaving buyers with nugatory holdings.

Learn More: Argentina’s Stablecoin Suppose After Authorities Advice of Leaving slack Currency Controls

Online fraud Milei Dissolves Investigative Unit

Fair five days after the crash, Milei established the Investigative Task Unit (UTI) below the Ministry of Justice. The unit became once tasked with analyzing any misconduct, coordinating with national regulators, and submitting proof to the judiciary.

On Would possibly perchance possibly 20, on the opposite hand, Milei signed Decree 332/2025, co-signed by Justice Minister Mariano Cúneo Libarona, dissolving the unit. The decree said the UTI had “done its assigned job” by passing proof to the Public Prosecutor’s Operate of job. No public findings were disclosed to this level.

Timing Fuels Suspicion Amid Ongoing Legal Action

The circulate comes at a politically sensitive time. Make a decision María Romilda Servini is main a separate judicial investigation into whether Milei or stop mates were complicit in monetary fraud. The Central Financial institution has moreover been ordered to free up info referring to monetary operations animated both Milei and his sister, Chief-of-Workers Karina Milei.

Within the U.S., no no longer as a lot as one class-mosey lawsuit has been filed against Milei, accusing him of erroneous promotion and negligence, arguing that investor believe became once largely driven by his public backing of the token.

Online fraud Watchdogs Place Tranquil as Power Mounts

No topic the unit’s shutdown, diverse companies—such because the Anti-Corruption Operate of job, the Central Financial institution, the Financial Intelligence Unit, and the Nationwide Securities Commission—remain below stress to proceed their probes. Media retail outlets represent that no conclusive info has emerged from these bodies, and their silence is stoking public distrust.

The UTI became once led by María Florencia Zicavo, a senior Justice Ministry decent identified to be closely aligned with Minister Libarona. Her appointment, and now the unit’s dissolution, has very top added to suspicions that the federal government is making an are attempting to manipulate the account and limit political distress.

Crypto Market Confidence Wavers

Argentina’s $LIBRA fiasco is the most up-to-date in a string of crypto controversies affecting Latin American markets. As adoption surges within the distance, questions about investor protection and government accountability occupy grown louder.

Milei, who rose to vitality on promises of business liberalization and monetary innovation, may possibly well presumably now face one amongst his most extreme political crises yet—satirically caused by the very sector he sought to champion.

Traders and lawmakers alike are calling for transparency, and as scrutiny intensifies, the shutdown of the $LIBRA probe may possibly well presumably very top designate the commence of a broader political and ethical storm.