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Under President Javier Milei, the Argentine government has officially dissolved a state-appointed task force investigating the controversial LIBRA token. This move has sparked a wave of criticism both domestically and internationally, raising fresh questions about the token’s origins, its meteoric rise, and the political entanglements surrounding it.
What began as a viral crypto project endorsed, at least initially, by one of Latin America’s most outspoken leaders has now become a symbol of transparency failure and speculative damage, with the LIBRA token now trading at a staggering $0.06, down from a $4.5 billion valuation at its peak.
A Sudden Shutdown
The now-defunct Investigation Task Unit (UTI) was created in February 2025 to examine allegations of insider trading, unauthorized public fundraising, and potential misconduct by public officials regarding the LIBRA token.
On May 19, 2025, President Milei issued Decree 332/2025, declaring that the UTI had “fulfilled its mission” by collecting evidence and forwarding it to the Public Prosecutor’s Office. Critics, however, argue that the task force was dissolved prematurely, and without releasing any public findings or reports.
“This is a political maneuver aimed at silencing further inquiry,” said opposition lawmaker Carla Ponce. “There was no transparency, and the people deserve answers.”
Milei’s Controversial Role
The controversy deepened due to President Milei’s initial social media posts endorsing the LIBRA token back in February. The token surged in value after his endorsement but crashed after he distanced himself from the project, claiming he had only shared “information” and had no promotional intent.
Following Milei’s disassociation, the LIBRA token plummeted in value, wiping out investor funds and sparking accusations of a pump-and-dump scheme. The Argentine president has since denied involvement in any market manipulation.
Token Price Collapse
The LIBRA token, once touted as a revolutionary Argentine-backed digital asset, has seen its price fall dramatically from a high of several dollars to just $0.06 as of May 21, 2025.
This price collapse reflects not only shaken investor confidence but also growing skepticism around celebrity and political endorsements in the crypto space.
Political and Legal Fallout
Despite the dissolution of the task force, investigations are far from over. Judicial inquiries continue in both Argentina and the United States, with key figures including President Milei and his sister Karina Milei allegedly under scrutiny.
“The premature shutdown of the UTI will not derail international probes,” said legal analyst Esteban Gutiérrez. “This scandal has global implications given the number of cross-border investors.”
The Argentine opposition is now pushing to establish a new parliamentary commission to continue investigating the LIBRA token case independently.
Public Backlash and Election Risks
A recent poll by Zuban Córdoba indicates that 57.6% of Argentinians have lost trust in President Milei as a result of the LIBRA token affair. Though his party, La Libertad Avanza, still leads in some voter segments, the scandal threatens to become a major issue in the upcoming election cycle.
“Milei built his reputation on radical transparency and anti-corruption,” said political commentator Lucía Díaz. “This incident severely undermines that narrative.”
Conclusion
The abrupt termination of the UTI’s investigation into the LIBRA token has only deepened the mystery and intensified public outcry. As judicial proceedings continue and investors grapple with losses, the full scope of the scandal remains unclear.
While the LIBRA token may have started as a digital experiment with mass appeal, it now serves as a stark reminder of how quickly political influence and speculative hype can destabilize financial ecosystems.
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FAQs
1. What is the LIBRA token?
A cryptocurrency linked to Argentina, initially endorsed by President Milei, now embroiled in legal controversy.
2. Why did its price collapse?
The price fell after Milei disavowed the project, leading to investor panic and a sell-off.
3. Who was investigating the token?
Argentina’s UTI, a special unit that has since been dissolved.
4. Is the LIBRA token still under investigation?
Yes, by judicial authorities in Argentina and the U.S.
5. Can investors recover losses?
Unlikely, unless fraud is proven in court and restitution is ordered.
Glossary of Key Terms
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LIBRA token – A digital asset at the center of a major Argentine political scandal.
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UTI – Investigation Task Unit formed by the government.
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Pump-and-dump – A form of securities fraud involving artificially inflated prices.
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Decree – A legally binding order by a head of state.
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Public Prosecutor’s Office – The authority now handling the evidence from the UTI.
