Argentina President Javier Milei Orders Probe into KIP Protocol’s $LIBRA Cryptocurrency

Argentina’s President Javier Milei has ordered an investigation into the launch of the $LIBRA cryptocurrency, which has sparked widespread controversy.

The decision comes after concerns arose about the project’s legitimacy, prompting Milei to delete a social media post that initially promoted it. The probe will examine whether any wrongdoing occurred in connection with the cryptocurrency’s release.

President Javier Milei Orders Probe into $LIBRA Cryptocurrency

According to an X post, the Office of the President has released an official statement outlining Milei’s decision to initiate a formal investigation into the $LIBRA cryptocurrency and its connections to KIP Protocol. The statement, released after the LIBRA token price crash, confirmed that the President had instructed Argentina’s Anti-Corruption Office (OA) to determine whether any government official, including himself, engaged in improper conduct related to the project.

To further ensure transparency, Milei has also ordered the creation of an Investigation Task Unit (UTI) within the Presidency. This unit will include representatives from government agencies specializing in cryptocurrency regulation, financial activities, and anti-money laundering enforcement. Consequently, the goal is to collect and analyze all relevant data on the $LIBRA token, KIP Protocol, and individuals or organizations involved in the project.

Subsequently, the findings of the investigation will be submitted to judicial authorities, who will assess whether any legal violations occurred. The President’s office reaffirmed Milei’s commitment to fully clarifying the situation and holding accountable any parties found to have engaged in wrongdoing.

KIP Protocol Denies Role in Cryptocurrency Launch

Following public scrutiny, KIP Protocol released a statement denying involvement in the launch and market-making activities of $LIBRA. The company stated that the token was fully managed by Kelsier Ventures, a separate entity represented by Hayden Mark Davis. KIP Protocol clarified that its role was limited to managing and overseeing tech projects after the launch, rather than issuing the cryptocurrency.

“KIP was invited post-launch to oversee the selection of funded tech projects and provide technical infrastructure for AI initiatives,” the company stated. The KIP also emphasized that they did not hold any of the cryptocurrency wallets associated with the launch or make any financial gains from the project.

Despite KIP’s denial, some users pointed out that the company had shared posts celebrating the success of the $LIBRA token. This led to further skepticism about its claims of non-involvement.

Binance Founder Weighs In as Public Scrutiny Grows

The launch of $LIBRA and its subsequent controversy drew reactions from figures in the cryptocurrency industry. Binance founder Changpeng ‘CZ’ Zhao commented on the situation, warning about the risks of celebrity-backed cryptocurrency projects. His remarks came as concerns grew over the potential for misleading promotions and possible fraudulent activities.

Public reaction intensified after President Milei deleted his social media post about $LIBRA.

The Office of the President Javier Milei stated that Milei frequently shares posts supporting new businesses and investments in Argentina and was not involved in the development of the cryptocurrency. The decision to remove the post, according to the statement, was meant to prevent further speculation about government involvement.

Investigation to Examine Key Players and Financial Transactions

With the establishment of the Investigation Task Unit, government authorities will analyze financial transactions and other records related to $LIBRA’s launch. The unit will assess whether investors were misled and if any irregularities occurred in the cryptocurrency’s issuance and market activity.

Moreover, there has been speculations on possible insider trading with Lookonchain identifying a trader who used $2.02M to buy 5.08M $LIBRA and later making over $6.72M quickly after selling immediately post launch along with other 11 insider wallets who made $43.8.

However, amid the clarifications from the Argentina’s President Javier Milei and KIP Protocol, LIBRA price has recovered significantly. At press time, LIBRA was trading at $0.4349, a 97% surge from the intra-day low of $0.123 but still 58% down from its all time high of $1.03 hit just 24 hours ago