Argentina’s President, Javier Milei, recently became the focal point of an ethics inquiry due to his social media endorsement of the cryptocurrency LIBRA in February 2025. The Anti-Corruption Office of Argentina decided against any disciplinary actions, deeming the promotion an expression of Milei’s background as an economist, rather than his presidential duties. This verdict has triggered a wider debate on the separation between personal and official social media activities by politicians.
What Were the Findings of the Investigation?
The investigation, led by OA President Alejandro Melik, found that Milei’s social media presence dates back to his tenure before assuming presidential duties. Melik concluded that the promotion was personal in nature and did not involve any misuse of presidential authority, classifying it outside the realm of Milei’s official capacities.
It was also determined that the promotion of LIBRA did not utilize any government resources or channels, reinforcing the assessment that no legal infractions were committed.
How Did the Market React to LIBRA’s Publicity?
Initially, Milei’s endorsement led LIBRA to surge in value, reaching $4.5 billion, claiming to support Argentine small and medium enterprises. Shortly afterward, however, Milei withdrew the post, citing a lack of concrete information about the initiative.
This retraction caused LIBRA’s market value to plummet by 90%, resulting in a $4 billion loss. On-chain analysis revealed 86% of traders suffered an aggregate loss of $251 million, while others profited by $180 million. Experts indicate such social media endorsements can significantly affect cryptocurrency volatility.
Can Public Officials Separate Personal Views from Official Platforms?
LIBRA’s co-founder, Hayden Davis, claimed a connection to President Milei through his sister, Karina Milei, which brought the matter under further scrutiny. Despite rumors of improper transactions, no evidence of misconduct was found in OA’s reports.
This incident underscores the power of state leaders’ social media posts on public opinion and emphasizes the importance of transparency. The LIBRA case might be closed, but the discussion on social media’s impact on financial markets is far from over.
The examination surrounding LIBRA reveals several important points:
- The necessity for clearer boundaries between personal expression and official influence in political figures’ social media engagements.
- The potential for immense market volatility driven by influential endorsers.
- The importance of transparency and verified information in financial promotions.
Public figures hold significant sway over market perceptions, underscoring the need for careful communication. While the LIBRA affair fades, the discourse on influencers’ roles in financial dynamics continues to evolve.
