Did Country Just LEGALIZE Presidential Pumping?

President Javier Milei was cleared of ethical misconduct after promoting the $LIBRA cryptocurrency, igniting debate over presidential influence in volatile crypto markets.

At a Glance

  • Argentina’s anti-corruption office ruled Milei’s January–February 2025 promotion of the $LIBRA token was personal, not official.
  • No government resources or policy changes were linked to his endorsement according to the clearing.
  • The $LIBRA token surged to a $2 billion cap before crashing 90%, prompting investor backlash and investigations.
  • The fast-track investigation led to dissolution of the special task force created to probe the case.
  • Federal court cases and class-action suits in Argentina, US, and UK continue despite the ethics ruling.

Institutional boundaries

Argentina’s Anti-Corruption Office (OA) concluded that Milei’s February post on his personal X account did not commission official actions or use taxpayer money. The promotion, deemed a private expression, remains within the president’s rights as an individual citizen. The OA found no direct misuse of authority or ethical breach under Argentina’s public ethics code.

Market fallout and political risk

The $LIBRA token’s price soared from near zero to over $5 in under an hour after Milei’s post, then plunged, wiping out an estimated $250 million from mostly retail investors. Dubbed “Cryptogate,” the incident triggered calls for impeachment and fraud investigations by opposition parties, along with over 110 formal criminal complaints. Despite the OA’s clearance, a federal criminal probe is moving forward, as are class-action lawsuits across three continents.

Consequences for presidential accountability

This ruling exposes tension between personal freedom and presidential responsibility. Critically, the OA operates within the executive branch—a structure critics argue risks conflicts of interest, especially when task forces are disbanded by the president, as happened with the special unit investigating $LIBRA. Opposition legislators have vowed to revive a parliamentary commission, while the judicial process continues independently.

Supporters of Milei claim this is an unfair politicization of cryptocurrency advocacy, pointing to similar endorsements he’s made for Argentine businesses in the past. Meanwhile, critics warn that future presidents could exploit personal social media to influence financial markets without oversight.

Strategic implications

The OA’s ruling may set precedent internationally: heads of state actively promoting financial products could be held personally accountable—but not officially—depending on institutional safeguards. Argentina’s assault on institutional oversight and ongoing external litigation indicates that reputational damage may outlast any official vindication.

Striking a balance between presidential free speech, market protection, and independent accountability will be key as cryptocurrencies pose growing ethical and political challenges worldwide.