Argentina’s Milei provided ‘essential collaboration’ for Libra project, congressional report finds
An investigative committee inside the Argentine Chamber of Deputies has launched a scathing remaining report on the collapse of the Libra cryptocurrency, recommending that the Nationwide Congress consider whether or not President Javier Milei incurred “misconduct in workplace” for his function in selling the token.
Milei had promoted the Libra cryptocurrency, meant to bootstrap funding into home small companies, with an X put up from his private account that he later deleted after 8 wallets associated to the Libra staff cashed out $107 million.
The report, titled “$LIBRA WAS NOT AN ISOLATED EVENT,” concludes that the widespread losses related to the token weren’t merely the results of poor oversight, however arguably the results of a “deliberate will to evade institutional controls.”
A abstract of the 200-page report’s remaining issues, offered to The Block by Juan Marino, an Argentine politician and the secretary of the investigative committee, concluded, “Javier Milei concerned the presidential investiture to permit the alleged $LIBRA rip-off to successfully happen: with out his tweet, $LIBRA wouldn’t have had the amount of purchases it did.”
Milei has denied wrongdoing within the scandal and, in Might, disbanded an investigative activity drive arrange by his workplace to probe the Libra scandal and its connections to Milei and his sister, Karina Milei, days after a choose requested Argentina’s Central Financial institution to unseal each the president’s and his sister’s financial institution accounts.
Milei and the Libra founders, together with American entrepreneur Hayden Davis, are dealing with a judicial investigation in Argentina, in addition to a category motion lawsuit from Burwick Legislation, a New York-based agency specializing in cryptocurrency scams.
The report alleges that 114,410 wallets misplaced cash buying and selling Libra.
A “sample” of misbehavior
Whereas the Libra collapse in February 2025 drew probably the most worldwide consideration, the committee’s report outlines a sample of habits starting months earlier. Investigators flagged the launch of the KIP Protocol in December 2024 as a factual precedent.
In line with the committee, President Milei publicly validated KIP shortly earlier than its liquidity swimming pools had been drained, a sequence of occasions that repeated with $LIBRA. On-chain evaluation cited within the report alleges that operator Manuel Terrones Godoy transformed $KIP tokens to USDT and transferred funds to affiliate Mauricio Novelli on the identical day because the token’s public launch.
The committee said that this repetition “makes believable the speculation” that the administration systematically bypassed technical our bodies just like the Nationwide Securities Fee (CNV) to facilitate these tasks.
“In each circumstances, the cryptocurrencies had been launched after having obtained some sort of public validation by the President of the Nation, after which the liquidity swimming pools had been emptied, producing an abrupt drop in worth,” the report states.
Milei’s promotion of the KIP protocol has not beforehand obtained the identical stage of scrutiny because the Libra scandal. “Though $KIP didn’t attain the repercussion of $LIBRA — provided that the latter counted on sustained presidential promotion by way of a tweet pinned for hours—it did set up a factual and temporal precedent,” the report states.
The committee additionally discovered that Milei had promoted an NFT recreation known as “Vulcano,” created by Novelli, and “CoinX,” an organization raided by the Judiciary within the context of a fraud investigation initiated in 2022.
Legislators from Milei’s get together La Libertad Avanza reportedly attended the Tuesday assembly of the investigative committee, according to El País, and ” rejected the report and argued that the opposition didn’t safe sufficient assist to maneuver it ahead,” although the lawmakers didn’t current an alternate proposal.
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