In a swift and contentious move, President Javier Milei has shut down the Unidad de Tareas de Investigación (UTI), a unit tasked with probing his alleged ties to the LIBRA memecoin. This decision comes hot on the heels of the unit’s explosive findings being handed over to Argentine prosecutors—a development that has sent ripples through both the political and cryptocurrency spheres. The decree, rolled out by the Ministry of Justice and signed by Milei alongside Justice Minister Mariano Cúneo Libarona, states that the UTI had fulfilled its purpose. But questions linger. Why now? And what does it mean for those navigating the volatile seas of digital assets?
A Tumultuous Tale
The narrative took a dramatic turn back in February when Milei tweeted about LIBRA, a flashy Solana-based memecoin. The market caught fire—LIBRA’s capitalization skyrocketed to a dazzling $4.5 billion before plummeting over 80% within mere hours. Such a rollercoaster ride left investors reeling and analysts buzzing. But it didn’t end there. The drama intensified when Hayden Davies, LIBRA’s co-creator, claimed he had a tight grip on Milei, thanks to payments funneled to the President’s sister, Karina Milei—a prominent player in his administration.
According to sources close to the investigation, the UTI operated with support from heavyweights like the Argentine central bank and the anti-corruption office. This multi-agency collaboration added layers of complexity and credibility to the probe, which makes its dissolution all the more perplexing.
Market Mayhem and Political Intrigue
The closure of the UTI has stirred a hornet’s nest of speculation and skepticism. Crypto analyst Maria Fernandez notes, “The timing is curious. It’s as if the curtain dropped just as the show was getting interesting.” The sentiment is echoed by investors who are now left in a limbo—uncertain about LIBRA’s future and the market’s reaction to such political entanglements. This uncertainty mirrors the turmoil seen in other sectors, such as the recent Movement Labs scandal, where token-dumping allegations have similarly rattled investor confidence.
The incident has also placed a spotlight on the broader implications for cryptocurrency regulation in Argentina. With the market still grappling with the aftershocks of LIBRA’s nosedive, there are murmurs about potential regulatory tightening. Yet, the government’s next steps remain shrouded in mystery.
Meanwhile, LIBRA’s trajectory serves as a cautionary tale for those enthralled by the allure of memecoins. The rapid rise and fall of such assets highlight the inherent risks that come with investing in high-volatility tokens. As one industry insider put it, “This is a stark reminder: what goes up can—and often does—come crashing down.” For further insights into the risks associated with volatile token markets, see our coverage of Movement’s token-dump scandal.
The Road Ahead
While the dust has yet to settle, the cryptocurrency community is bracing for what’s next. Will there be further investigations? Could new regulatory measures be on the horizon? As of now, the answers are as nebulous as the future of LIBRA itself.
For President Milei, the closure of the UTI might provide temporary relief, but the underlying issues remain unresolved. The allegations of influence and control cast a long shadow that could have lasting repercussions on his presidency.
In the end, the saga of LIBRA and President Milei is a vivid illustration of the intricate dance between politics and cryptocurrency—a dance where the steps are uncertain, and the stakes are sky-high. As we move forward into June 2025, the unfolding events are sure to keep both the political and crypto worlds on edge.
Source
This article is based on: Milei Closes Down LIBRA Investigative Unit After It Shares Findings With Prosecutors
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
