Argentina’s Milei Accused of Supporting Controversial LIBRA Token

President Milei’s tweet on $LIBRA contributed to market impact and significant financial losses.

The committee connects Milei to previous crypto projects, including the KIP Protocol, citing a pattern of behavior.

Milei faces legal challenges and a class action lawsuit tied to the $LIBRA token collapse.

An Argentine congressional committee has released its final report on the collapse of the $LIBRA token, accusing President Javier Milei of playing a key role in promoting the cryptocurrency. As per the Block report, the report alleges that Milei’s actions, including a public tweet about the token, significantly contributed to its market impact. As a result, the committee has called for an investigation into whether the president’s involvement constitutes misconduct in office.

Milei’s Involvement in the Libra Scandal

The 200-page report, compiled by the Argentine Chamber of Deputies’ investigative committee, accuses President Milei of using his office to lend legitimacy to the LIBRA project. The committee claims Milei’s endorsement, especially through a tweet from his personal account, boosted the token’s visibility and led to significant losses when the team behind the token cashed out $107 million

The tweet was later deleted after eight wallets associated with the $LIBRA team were found to have withdrawn large sums. The report stresses that without Milei’s involvement, the token may not have attracted the same level of attention or trading volume. The committee claims this public validation contributed to the widespread financial losses associated with $LIBRA, as investors were encouraged to buy into the token.

Pattern of Crypto Projects Linked to Milei

This controversy over $LIBRA is not the first time the president has been linked to questionable cryptocurrency ventures. The committee points to the KIP Protocol, launched in December 2024, as a similar case. According to the report, Milei publicly endorsed the KIP Protocol shortly before its liquidity pools were drained. The report also connects on-chain transactions showing that operator Manuel Terrones Godoy converted KIP tokens into USDT, transferring the funds to Mauricio Novelli on the same day the token was launched.

These findings suggest a recurring pattern of behavior where the president’s public endorsement of cryptocurrency projects may have been used to bypass regulatory oversight. The committee notes that both $LIBRA and KIP followed similar sequences, with initial public validation from Milei followed by sharp price drops after liquidity pools were emptied.

Legal and Political Repercussions

The report details the financial damage caused by these projects, with over 114,000 wallets reportedly losing money through LIBRA. Milei faces multiple legal challenges, including a judicial investigation into his involvement with the Libra project and a class action lawsuit filed by Burwick Law, a New York-based firm specializing in cryptocurrency scams.

The findings have sparked significant political debate, with legislators from Milei’s party, La Libertad Avanza, rejecting the committee’s report. They argued that the opposition failed to gather enough support to move the investigation forward. However, no alternative proposals were presented at the meeting.