Argentina’s Office of the Anti-Corruption Bureau (Oficina Anticorrupción, OA) has concluded its administrative investigation and determined that President Javier Milei did not violate public ethics regulations when he promoted the cryptocurrency Libra ($LIBRA) from his personal social media account earlier this year. The OA’s decision closes the ethics probe but leaves intact an ongoing federal criminal inquiry and a series of related international civil lawsuits.
In mid-February, President Milei posted on his personal X account a message endorsing Libra, describing it as a potential financing tool for small businesses and start-ups in Argentina. At the time of his post, the token’s market capitalization briefly rose above two billion U.S. dollars before falling by approximately 90 percent within days. Shortly after the price drop, Milei removed the post.
The OA’s review focused on whether Milei’s social media endorsement constituted an official act of public office or improper use of government resources under the country’s Law of Ethics in the Exercise of Public Function. In its resolution, the OA concluded that the tweet originated solely from Milei’s private account without any indication of state involvement, government contracts, or allocation of public funds. Consequently, the agency determined that the post did not amount to an institutional endorsement or official policy decision and therefore did not breach public ethics rules.
While the administrative process has concluded, a separate criminal case is moving forward in the Federal Criminal and Correctional Court No. 1 in Buenos Aires. Prosecutors have requested financial records and communications involving President Milei, as well as three other individuals: Sergio Daniel Morales, a former advisor to Argentina’s National Securities Commission (CNV); Manuel Terrones Godoy, a private-sector consultant; and Mauricio Novelli, an entrepreneur linked to blockchain interests. The federal prosecutor’s office is examining whether any fraudulent activity or illicit benefit by public officials occurred in connection with the cryptocurrency promotion.
In addition to domestic legal proceedings, collective lawsuits have been filed in Argentina, the United States and the United Kingdom on behalf of investors who suffered losses after Libra’s market value collapsed. In Buenos Aires, a group of 26 plaintiffs has lodged a civil complaint seeking restitution for tokens acquired following Milei’s tweet. The suit names President Milei, his sister Karina, and several project insiders as defendants.
Meanwhile, in the Southern District of New York, investors obtained a temporary restraining order on May 28 freezing approximately $57.6 million in USDC stablecoins held in two on-chain addresses controlled by Hayden Davis, a founder of the Libra project. The funds remain inaccessible pending a hearing scheduled for June 9 to determine whether the freeze should remain in effect throughout the litigation.
Circle Internet Financial, the issuer of USDC, carried out the asset freeze following the New York court order and coordinated with Argentine judicial authorities. The freeze affected two wallets identified on the Solana blockchain, one containing roughly $44 million and the other about $13.6 million in USDC. These funds have been earmarked for potential compensation to affected investors, subject to final court rulings.
On May 19, President Milei issued an executive decree dissolving the special investigative task force established in February to support the “Cryptogate” inquiries. The decree stated that the task force had completed its mandate, though no comprehensive public report has been issued. The dissolution of the unit coincided with intensified federal investigations and the emergence of multiple civil actions abroad.
At the same time, Argentina’s financial regulators, including the CNV and Banco Central de la República Argentina (BCRA), have announced reviews of policies governing public figures’ endorsements of financial instruments. Regulators are considering new guidelines to clarify the distinction between private communications and official statements by government officials.
As of early June, the federal criminal court has issued subpoenas for additional testimony from investment advisors and blockchain analysts involved with the Libra network. Prosecutors are also analyzing whether any digital wallets tied to Milei or his close associates received funds or tokens in connection with the cryptocurrency’s initial distribution.
In London, a parallel class action has been filed in the High Court of Justice by a law firm representing retail investors who purchased Libra following Milei’s endorsement. Plaintiffs in the U.K. suit are seeking damages under local consumer-protection laws, arguing that the token’s rapid collapse inflicted significant financial harm.
Throughout these developments, neither President Milei nor his legal representatives have faced formal criminal charges. Milei’s office has maintained that the president acted within his rights to share personal views on social media and that no state resources were involved in the promotion.
The multi-jurisdictional nature of the ongoing litigation means that investors and legal authorities in Argentina, the United States and the United Kingdom will continue to coordinate evidence-sharing and court proceedings over the coming months. Key upcoming dates include the June 9 hearing in New York, further document productions in Buenos Aires, and preliminary case management conferences in London.
For now, the OA’s decision brings closure to the administrative ethics inquiry, affirming that Milei’s social media post was personal in nature and did not constitute an official government act. However, the outcome of the federal criminal investigation and the international civil lawsuits will determine whether any additional legal or financial consequences arise from the controversy that local media labeled “Cryptogate.”
