Milei's Memecoin Mishap: Cleared of Wrongdoing

Argentine President Javier Milei has been cleared of misconduct related to his February promotion of the Solana-based memecoin, LIBRA. The country's anti-corruption office determined that Milei was acting "as an economist and not a public official" when he shared news of the project on X (formerly Twitter).

The LIBRA Saga

Milei's promotion initially caused LIBRA to surge to a market capitalization of around $4.5 billion. However, the joy was short-lived. The President deleted the post just hours later, claiming ignorance of the project's details. This sparked a massive sell-off, resulting in LIBRA crashing by 90% and wiping out over $4 billion in value. On-chain data revealed that a staggering 86% of traders lost a total of $251 million.

Adding fuel to the fire, it was discovered that LIBRA's co-creator, Hayden Davis, boasted about influencing Milei through payments made to Karina Milei, the President's sister and a key figure in his administration.

Anti-Corruption Office Ruling

Despite the controversies, the anti-corruption office stated that Milei's personal X account was created before his presidency and even his term as a deputy. Therefore, his actions were not considered a violation of his official duties.

Key Takeaways

• Milei Cleared: Argentine President Javier Milei has been cleared of misconduct over promoting the LIBRA memecoin.
• Market Volatility: The incident highlights the extreme volatility and risk associated with memecoins.
• Political Influence: The story raises concerns about the potential for political influence and conflicts of interest within the crypto space.