Argentina’s President Orders Probe into $LIBRA Cryptocurrency Launch

• President Milei directs an investigation into the $LIBRA cryptocurrency , tasking authorities with analyzing potential misconduct and insider trading.
• KIP Protocol denies involvement in $LIBRA’s launch, despite earlier social media posts suggesting its connection to the cryptocurrency project.
• LIBRA’s price surged 97% after an initial crash, but it remains significantly below its peak following allegations of financial irregularities.

Argentina’s President Javier Milei has ordered an official investigation into the launch of the $LIBRA cryptocurrency. The move follows rising concerns about the project’s legitimacy and Milei’s decision to delete a social media post initially promoting the token. Authorities will determine whether any misconduct occurred in connection with the cryptocurrency’s release.

The President’s office confirmed that Argentina’s Anti-Corruption Office (OA) will assess whether any government official, including Milei, was involved in irregularities related to the project. The OA will work alongside a newly established Investigation Task Unit (UTI) within the Presidency to analyze financial activities linked to $LIBRA and its affiliation with KIP Protocol.

Government Establishes Investigation Task Unit

The UTI will consist of representatives from agencies specializing in cryptocurrency regulations, financial oversight, and anti-money laundering enforcement. The team will gather and assess all data regarding $LIBRA, KIP Protocol, and individuals or entities linked to the project. Upon completion, findings will be submitted to judicial authorities to determine if any legal violations took place.

Following public scrutiny, KIP Protocol distanced itself from the $LIBRA launch, stating that the project was managed by Kelsier Ventures, represented by Hayden Mark Davis. The company asserted that its role was limited to post-launch oversight of technology projects and AI initiatives. KIP Protocol emphasized that it neither held any cryptocurrency wallets related to the launch nor received financial benefits from the token.

Market Reaction and Public Scrutiny

Despite KIP Protocol’s denial, skepticism persisted as past social media posts showed the company celebrating $LIBRA’s success. Meanwhile, Binance founder Changpeng Zhao warned investors about the risks of celebrity-backed cryptocurrencies , further amplifying concerns over potential misleading promotions.

The controversy deepened after Milei removed his social media post referencing $LIBRA. The President’s office clarified that Milei frequently promotes new business initiatives in Argentina and was not directly involved in the cryptocurrency’s development. The post’s removal aimed to prevent speculation regarding government involvement.

Authorities to Scrutinize Financial Transactions

The Investigation Task Unit will analyze financial transactions related to $LIBRA’s launch. Reports indicate possible insider trading, with Lookonchain identifying a trader who invested $2.02 million to acquire 5.08 million $LIBRA and profited $6.72 million after an immediate post-launch sale. Additionally, 11 insider wallets reportedly gained $43.8 million.

Despite the controversy, the $LIBRA token experienced a price surge after an initial crash. At the time of writing, the token was trading at $0.4349, marking a 97% increase from its intra-day low of $0.123. However, it remains 58% below its all-time high of $1.03 recorded just 24 hours earlier.