Argentina investigates LIBRA collapse: allegations against President Milei for abuse of power

The investigative committee of the Argentine House of Representatives has just released its final report on the collapse of the $LIBRA coin, accusing a state-backed crypto promotion model. The committee, led by the opposition, asserts that President Javier Milei had “essential cooperation” for the project and suggests that Congress evaluate whether this conduct constitutes a violation of his office.

The report emphasizes that Milei promoted $LIBRA, which aims to raise funds for small domestic businesses, through a personal post on X that he later deleted, after 8 wallets linked to the team $LIBRA withdrew 107 million USD. The report concludes that the widespread losses are not only the result of poor oversight but may be due to “a deliberate intent to evade institutional controls.”

MileiThe report also mentioned a similar “behavioral model” earlier with KIP Protocol, launched in December 2024, when President Milei confirmed KIP before the liquidity pools were completely withdrawn, an event that repeated with $LIBRA. On-chain analysis shows that operator Manuel Terrones Godoy transferred $KIP to USDT on the same day of the public launch and sent money to associate Mauricio Novelli.

The committee accused Milei of promoting an additional NFT game “Vulcano” and the company “CoinX,” which has been under investigation for fraud since 2022. A total of 114,410 wallets incurred losses while trading $LIBRA.

Lawmakers from Milei's party, La Libertad Avanza, attended the committee meeting and dismissed the report, arguing that the opposition lacked sufficient support to bring the report to Congress, but no alternative proposal was put forward.