Argentina Launches Investigation into LIBRA Cryptocurrency Following Controversy

• Argentina’s Anti-Corruption Office is probing LIBRA’s launch to determine any misconduct or regulatory violations.
• KIP Protocol denies issuing or managing LIBRA, stating its role was limited to overseeing post-launch tech projects.
• The controversy intensified after President Milei deleted a social media post about LIBRA, prompting industry warnings on token risks.

Argentina’s President Javier Milei has directed an investigation into the launch of the $LIBRA cryptocurrency following concerns over its legitimacy. The decision came after a social media post promoting the project was deleted amid growing scrutiny. 

President Javier Milei Orders Probe into $LIBRA Token

According to an official statement from the Office of the President, the investigation will be led by Argentina’s Anti-Corruption Office (OA). Authorities will assess whether any government official, including Milei, had any improper involvement in the project.

To ensure transparency, a specialized Investigation Task Unit (UTI) has been established, comprising representatives from regulatory agencies focused on cryptocurrency oversight, financial compliance, and anti-money laundering enforcement.

The investigation aims to collect all relevant data on LIBRA’s issuance, market movements, and associated organizations, particularly the KIP Protocol. The task force will examine financial transactions to determine if investors were misled or if irregularities occurred during the token’s launch. Findings from the investigation will be submitted to judicial authorities for further legal assessment.

KIP Protocol Denies Involvement in Token Launch

Following the controversy, the KIP Protocol released a statement denying any role in the issuance and market-making activities of LIBRA. The company clarified that Kelsier Ventures, represented by Hayden Mark Davis, was responsible for managing the token. KIP Protocol asserted that its role was limited to overseeing technology projects post-launch rather than handling the cryptocurrency’s distribution or financial operations.

The controversy surrounding LIBRA attracted attention from industry figures, including Binance founder Changpeng ‘CZ’ Zhao. Zhao warned against celebrity-backed cryptocurrency projects, citing risks of misleading promotions and possible fraudulent schemes. Public scrutiny intensified after President Milei deleted his social media post about $LIBRA.

The Office of the President clarified that Milei frequently shares posts supporting new investments in Argentina. However, it maintained that neither he nor his administration was involved in the token’s development. The statement further explained that the post was removed to prevent speculation about the government’s association with the project.