What Happened?
Argentinian President Javier Milei announced the dissolution of the $LIBRA investigation team, stating that it has completed its phased tasks and transferred the data to the judiciary, but the investigation results have not been made public.
The $LIBRA coin, which saw a surge due to presidential endorsement, later crashed, resulting in millions of dollars in losses. Critics have suggested it may involve a “rug pull scam,” and Milei himself has faced questions about whether he profited his close associates.
Following the disbandment of the investigation team, the $LIBRA coin surged by 60% within 24 hours, with some investors hoping for a rebound as the scandal fades.
Argentinian President Officially Dissolves “LIBRA Meme Coin” Investigation Team
Recently, Argentinian President Javier Milei signed a decree to officially dissolve the investigation team originally tasked with probing the $LIBRA meme coin scandal. According to an announcement from the Argentine official gazette on May 20, Milei and the Minister of Justice jointly signed Decree No. 332/2025, declaring the disbandment of the “$LIBRA Investigation Special Task Force (UTI),” citing that the team “has completed its phased tasks,” and relevant information has been handed over to the Federal Prosecutor’s Office for processing.
However, foreign media reported that the team did not publicly release any investigative reports, leaving the identities of the developers behind the $LIBRA meme coin and the flow of funds still unknown.
What Happened with the LIBRA Meme Coin Storm?
Back in February 2025, Milei tweeted on X to promote the token $LIBRA related to the “Project Libertad” initiative, which the project’s official website claimed would utilize funds to support local small businesses in Argentina and promote economic development.
Following the president’s promotion, the price of $LIBRA skyrocketed from approximately $0.22 to over $5 within just a few hours. However, only an hour later, investors began to notice early buyers massively selling off, leading to a rapid crash in the price of $LIBRA, which fell by 70%.
According to data analysis firm LookOnChain, wallets associated with early trading of the coin cashed out over $107 million at the price peak. Additionally, foreign media outlet ICOBench reported that around 60 individual investors lost over $500,000, while another 24 investors lost over $1 million.
The community accused the developers of $LIBRA or those early investors in the project of conducting a “rug pull” operation. Specifically, they inflated the price to attract investors, then sold off en masse after the price increased, ultimately causing losses for later investors.
Of course, aside from the project team, President Milei has also faced intense criticism from the public. After the price crash, several investors accused the government of speculation and profiting close associates.
In response to societal backlash and opposition, the Milei administration quickly established the $LIBRA investigation team to determine whether the president himself was involved in any illegal activities or conflicts of interest with the developers behind the coin.
The Timing of the Investigation Team’s Dissolution is Thought-Provoking
Now, the team has been dissolved without publishing the final investigative results. Local Argentinian media outlet Ámbito pointed out that the criminal investigation by the Federal Prosecutor’s Office will continue even after the special task force’s dissolution.
Additionally, a federal judge has ordered the freezing of assets belonging to several individuals suspected of involvement in the case while lifting the bank secrecy rights of President Milei and his family, allowing investigators to delve into financial records.
Milei has consistently denied any illegal dealings with the $LIBRA meme coin, emphasizing that he only aimed to promote blockchain technology without any intent to profit. James Bosworth, founder of the U.S. risk assessment consulting firm Hxagon, noted that Milei’s momentum is strong, with his policies on lifting foreign exchange controls progressing smoothly, and his party recently winning a local election in the capital, making it an opportune time to close the investigation and avoid unfavorable information before the midterm elections.
After the disbandment of the investigation team, according to CoinGecko data, the price of the $LIBRA coin surged over 60% within 24 hours, reaching a peak of $0.04, the highest point in nearly a month. Foreign media analysis suggested that some investors expect the scandal to gradually fade, providing the coin with a chance for a “second spring.”
Regardless, meme coins, due to their lack of fundamental support and their susceptibility to emotions and public opinion, remain high-risk investment targets. Investors must carefully assess their risk tolerance to avoid blind investments.
Source: CryptoSlate, Decrypt