- LIBRA hit $4.5B via Milei’s endorsements before developers fled, causing $250M losses and fraud accusations.
- UTI’s closure redirected probes to federal prosecutors, U.S. lawsuits allege Milei’s role in LIBRA’s deceptive promotion.
- LIBRA’s RSI hit 72 (overbought) post-surge; low $5M volume signals speculative trading, not fundamentals.
Argentine President Javier Milei dissolved a government task force investigating the LIBRA memecoin on May 17, 2025, triggering an 85% price surge for the token within hours. The decision, executed via Decree 332/2025, cited the “completion” of the Investigative Task Force’s (UTI) objectives, though no findings were disclosed.
LIBRA’s price rose from $0.022 to $0.07 before settling near $0.04, with its Relative Strength Index (RSI) briefly hitting 72, a level often indicating overbought conditions.
LIBRA entered Argentina’s cryptocurrency market in early 2025, buoyed by Milei’s public endorsements on social media. The token’s valuation briefly surpassed $4.5 billion, drawing global retail investors.
However, developers, including founder Hayden Davis, reportedly withdrew millions and disappeared, leaving investors with losses estimated at $250 million. The collapse sparked demands for accountability and regulatory scrutiny.
🚨 El Gobierno logró DETENER un pedido de la oposición para activar en Diputados la comisión investigadora del escándalo de $LIBRA, que involucra a Javier Milei.
‼ En la sesión convocada para este mediodía NO hubo QUÓRUM, en la que además había proyectos para otorgarle una… pic.twitter.com/0x7BaKEcBw
— Radio Rivadavia (@Rivadavia630) May 21, 2025
The UTI, led by María Florencia Zicavo, faced criticism for operating under executive oversight rather than independent authority. Its dissolution fueled speculation that political interests overshadowed investigative transparency.
The Government managed to STOP a request from the opposition to activate in Deputies the commission of investigation of the $LIBRA scandal, which involves Javier Milei.
‼ In the session called for this noon there was NO QUORUM, in which there were also projects to grant an improvement to PENSIONERS, reimplement the PREVISIONAL MORATORIUM and declare EMERGENCY in FLOODED areas.
Traders interpreted the move as reducing regulatory risks for LIBRA, prompting a sharp but short-lived price rebound. ETHNews analysts note the rally lacked foundational support, reflecting speculative trading rather than project viability.
Milei now confronts investigations by Argentine federal prosecutors and a congressional committee. A U.S. class-action lawsuit alleges the president’s promotion of LIBRA contributed to investor losses, accusing him of negligence. While Milei’s direct legal liability remains uncertain, the case highlights challenges in linking political rhetoric to financial accountability in decentralized markets.
LIBRA’s 24-hour trading volume remains below $5 million, signaling limited liquidity. Despite brief surges, the token faces skepticism due to unresolved fraud allegations and regulatory ambiguity.
