What Happened?
Argentine President Javier Milei announced the dissolution of the $LIBRA investigation task force, stating that its phase of work has been completed and that the data has been handed over to the judicial authorities, but the investigation results have not been made public.
The $LIBRA token, which experienced a surge in value following the president’s endorsement, subsequently crashed, resulting in millions of dollars in losses. Critics have accused it of potentially being a “rug pull scheme,” and Milei himself has faced questions regarding whether he profited personally from the situation.
Following the dissolution of the task force, the price of $LIBRA skyrocketed by 60% within 24 hours, with some investors hoping for a price rebound as the scandal fades away.
Argentine President Officially Dissolves the “LIBRA Meme Coin” Investigation Task Force
Recently, Argentine President Javier Milei signed a decree officially dissolving the task force that was initially responsible for investigating the $LIBRA meme coin scandal. According to an announcement in the Argentine official gazette on May 20, Milei jointly signed Decree No. 332/2025 with the Minister of Justice, declaring the dissolution of the “$LIBRA Investigation Special Task Force (UTI),” on the grounds that the task force had “completed its phase of work,” and relevant information had been transferred to the Federal Prosecutor’s Office for processing.
However, foreign media reported that the task force did not publish any investigation reports, and the identities of the developers behind the $LIBRA meme coin, as well as the flow of funds, remain unknown to the public.
What Happened with the LIBRA Meme Coin Storm?
Back in February 2025, Milei tweeted on X promoting the $LIBRA token related to the “Project Libertad” initiative, which claimed to use funds to support local small businesses in Argentina and promote economic development.
Following the president’s promotion, the price of $LIBRA surged from about $0.22 to over $5 within just a few hours. However, just one hour later, investors began to notice large-scale sell-offs by early buyers, leading to a rapid price collapse of $LIBRA, with a drop of 70%.
According to data analytics firm LookOnChain, wallets related to early trading of the coin cashed out over $107 million at the peak price. Additionally, foreign media outlet ICOBench reported that around 60 individual investors lost more than $500,000, while 24 investors lost over $1 million.
The community accused the developers of $LIBRA or early investors in the project of engaging in a scheme known as a “rug pull.” Specifically, this involves artificially inflating the price to attract investors, followed by large-scale sell-offs once the price rises, ultimately resulting in losses for later investors.
Of course, in addition to the project team, President Milei also faced intense criticism. After the price collapse, multiple investors accused the government of market manipulation and of benefiting close associates.
In response to social and opposition backlash, the Milei administration quickly established the $LIBRA investigation task force to determine whether the president himself had any illegal dealings or conflicts of interest with the developers behind the coin.
The Timing of the Task Force’s Dissolution is Intriguing
Now, with the task force being dissolved without publishing the final investigation results, Argentine local media outlet Ámbito pointed out that the Federal Prosecutor’s Office’s criminal investigation will continue.
Furthermore, a federal judge has ordered the freezing of assets belonging to several individuals suspected to be involved, while also lifting the bank secrecy 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 was only promoting blockchain technology without any intent to profit. James Bosworth, founder of the Washington-based risk analysis consultancy Hxagon, noted that Milei is currently riding a wave of popularity, with successful progress in lifting foreign exchange controls and his party recently winning a narrow victory in local elections in the capital. This timing is seen as ideal for closing the investigation, avoiding any negative information emerging before the midterm elections.
Following the dissolution of the task force, according to CoinGecko data, the price of $LIBRA surged over 60% within 24 hours, reaching a peak of $0.04, the highest point in nearly a month. Foreign media analysis suggests that some investors expect the scandal to gradually fade and see the coin having a chance for a “second spring.”
Regardless, meme coins lack fundamental support and are easily influenced by emotions and public opinion, remaining a high-risk investment. Investors must carefully assess their risk tolerance to avoid blind investments.
Source: CryptoSlate, Decrypt