Argentina’s President Javier Milei has ordered an official investigation into the controversial launch of the cryptocurrency $LIBRA after allegations of fraud surfaced. The move comes after Milei himself promoted the token on X (formerly Twitter), leading to a sharp price surge before it collapsed, wiping out billions in market value.
On Friday night, Milei endorsed $LIBRA, stating that it would support local enterprises and contribute to economic growth. Following his post, the token’s price skyrocketed to $5, only to plummet by nearly 90% within hours, falling below $1. The crash resulted in losses exceeding $4.4 billion, sparking concerns over the legitimacy of the project.
However, by then, public outrage had escalated. In response, Milei has now called for an in-depth probe into the matter.
Government Investigation Underway
On February 16, the Office of the President issued a statement explaining that the initial endorsement was a routine business promotion meant to encourage investment and job creation. It emphasized that the government had no official ties to the project.
To ensure transparency, Milei has tasked the Anti-Corruption Office (OA) with investigating whether any government officials, including himself, had any involvement in the token’s launch. Additionally, a newly established Investigation Task Unit (UTI) will conduct a broader inquiry into $LIBRA, scrutinizing all entities linked to its release. The UTI will operate under direct presidential oversight, with experts specializing in cryptocurrency, financial transactions, and money laundering.
Corporate Response and Allegations
One of the entities implicated, KIP Protocol, has denied any involvement in $LIBRA’s creation, stating that the token was entirely managed by Kelsier Ventures and its founder, Hayden Davis.
As the investigation unfolds, the scandal continues to fuel debate over cryptocurrency regulation and the responsibilities of public figures in financial endorsements.
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