Milei Axes LIBRA Investigation—Political Play or Crypto Pragmatism?

Argentina’s libertarian firebrand pulls the plug on a high-profile probe into Meta’s defunct stablecoin project. Was it a regulatory reckoning—or just convenient timing?

Behind the shutdown: Critics whisper about backroom deals with Big Tech, while free-market advocates cheer the move as a rejection of bureaucratic overreach. Either way, the crypto industry dodges another regulatory bullet.

What’s next? Watch for Buenos Aires to fast-track friendlier digital asset laws—and don’t be surprised when Wall Street banks suddenly ’discover’ the benefits of decentralization.

From hype to collapse

LIBRA entered Argentina’s crypto market in early 2025, fueled by populist rhetoric and digital libertarianism.

President Javier Milei’s endorsements on X (formerly Twitter) helped push its valuation past $4.5 billion within days, attracting global retail investors.

However, the token’s rapid rise was followed by an equally swift collapse. Its developers, including creator Hayden Davis, allegedly withdrew millions before vanishing, sparking accusations of fraud. Investors reportedly lost around $250 million.

Creation and closure of the UTI

In response to the growing backlash, the Milei administration launched the Investigative Task Force (UTI), led by María Florencia Zicavo.

But critics immediately flagged the body’s lack of independence, given its position within the executive.

The optics worsened when Milei issued Decree 332/2025 to dissolve the UTI, citing “completion” of its objectives, without publishing any findings.

Source: TradingView

Regardless, the market reacted quickly. Following news of the UTI’s dissolution, LIBRA surged 85% in the hourly chart, at press time. The token jumped from $0.022 to a peak above $0.07 before correcting and stabilizing around $0.04.

At the time of writing, the RSI briefly hit 72, signaling overbought conditions. This sharp price movement suggests a speculative rebound fueled more by news shock than underlying fundamentals.

Legal heat and increasing scrutiny

Shutting down the UTI has redirected the pressure. Argentina’s federal prosecutors now take charge of the criminal investigation. Meanwhile, a separate congressional committee is gearing up its inquiry.

Milei faces more than political fallout. A class-action lawsuit filed in the U.S. alleges negligence and deceptive promotion, accusing the president of legitimizing LIBRA and contributing to investor losses.

With the UTI gone and the investigation moving to more independent hands, the next phase could be far more consequential.