- Milei cleared of ethics violations in controversial $LIBRA crypto case.
- $LIBRA token crashes 90% after Milei’s online promotion post.
- Meetings revealed between Milei and $LIBRA creator before the launch.
President Javier Milei has been cleared of ethics violations related to his support for the cryptocurrency Libra ($LIBRA). Argentina’s Anti-Corruption Office (OA) released the decision after reviewing Milei’s actions. The OA claims that Milei’s post was meant just for Grzála, not as an official statement from the government. But Argentina, the United States, and Spain are still dealing with legal matters surrounding tokens.
Milei Promoted $LIBRA, Token Crashes 90% Within Hours
On February 14, the scandal started. The president promoted his cryptocurrency from the X account on that day. He depicted $LIBRA as helping small entrepreneurs in his country. The contract number in the post helped users purchase the token on the platform. In the beginning, the token’s price surpassed $5. Within those first hours, almost all of the market’s value was gone and fell by about 90%. Many investors lost a significant portion of their investments.
After the crash, Milei quickly deleted his post. There was a lot of upset from the public soon afterwards. People from the opposition party claimed he was deceiving people. Some voters wanted to impeach him from office. As a result, Milei asked the OA to look into his activities. According to his office, the purpose of the investigation was to look into whether any government official, including the President, broke any norms.
It was concluded by the OA that the post was not funded by public resources. It was not connected to any policies decided by the government. For this reason, the OA decided that it represented the patient’s views. The analysis ended by stating that Milei had not broken any ethical rules. Consequently, the findings proved the President had not done anything wrong.
However, there is still significant debate surrounding this issue. It was in April that Argentina’s lower house created a commission to look into the controversy. But the ruling party didn’t allow the commission to move forward by refusing to vote on its members. On top of that, civil and criminal inquiries are still happening in the United States, the United Kingdom, and Spain.
Milei Met $LIBRA Creator Before Token Launch
More details have also emerged about Milei’s connection to $LIBRA’s creators. Reports show that he met U.S. entrepreneur Hayden Davis before the token launched. Arranging the meetings was assisted by Argentine businessmen Mauricio Novelli and Manuel Terrones Godoy. Sergio Morales, a past advisor for the Argentine National Securities Commission (CNV), took part in the meeting. Prosecutors investigating his actions prompted him to resign from the presidency in March.
According to the OA, the investigation should be focused on Morales. Authorities are examining whether he used confidential data in favor of the planned launch of $LIBRA. If it is found to be true, it might lead to more legal actions. So, although Milei did not face charges, other people involved might still be penalized.
At the same time, disagreements involving cryptocurrencies are becoming more frequent at a global level, including in Argentina. Several investors have joined in class-action lawsuits. According to them, the promotion did not match their expectations and they lost money as a result. These cases are being handled in the courts, which means they are not yet over.
Overall, Milei’s ethics case is finished, but the wider scandal is carrying on. The investigations, suing, and political turmoil have not been settled. Presently, charges against President Milei have been lifted. How far the impact of “Cryptogate” reaches could take a lot of time, with some effects appearing even a year from now.
The post President Milei Cleared in $LIBRA Ethics Probe appeared first on Live Bitcoin News.
Source link
