Argentina's President Orders Probe into LIBRA Crypto Launch Amid Fraud Fears

Argentina's President, Javier Milei, has ordered an official investigation into the launch of the LIBRA cryptocurrency, amid growing concerns about the project's legitimacy. The move comes after Milei deleted a promotional post about LIBRA on X, and his government has asked Argentina's Anti-Corruption Office (OA) to probe any potential misconduct by government officials, including Milei himself, related to the token's release.

The President's office confirmed the investigation in an official statement, expressing a desire for transparency regarding LIBRA's connection to the KIP Protocol. The announcement followed a significant crash in LIBRA's price, which has led to suspicions of fraud, insider trading, and price manipulation. Milei has established a special Investigation Task Unit (UTI) in his office, composed of experts in cryptocurrency regulations, finance oversight, and anti-money laundering enforcement, to delve deeper into the matter.

The task force will analyze money transfers, blockchain records, and any links between LIBRA, KIP Protocol, and related companies. Their findings will be submitted to the courts for further review. Meanwhile, the KIP Protocol has stated that it was not involved in the LIBRA launch, claiming that Kelsier Ventures, led by Hayden Mark Davis, was responsible for the token. KIP said its role was limited to providing technical support after the launch and managing AI-related projects funded by the initiative.

However, doubts persist, as users have pointed out that KIP Protocol had previously shared posts celebrating LIBRA's early success, contradicting its claims of non-involvement. Blockchain analytics firm Lookonchain has discovered unusual trading activity around LIBRA's launch, including one trader spending $2.02 million to buy 5.08 million LIBRA tokens and later selling them for $6.72 million. The firm also found 11 insider wallets that made a total of $43.8 million, raising concerns about potential insider trading and market manipulation within the project.

Despite the controversy surrounding LIBRA's launch, its price has begun to recover. At the time of this report, the token is trading at $0.3669, up 81.90% from its lowest point of $0.123. However, it remains significantly lower than its all-time high of $1.03, reached