Argentina’s Milei provided ‘essential collaboration’ for Libra project, congressional report finds

An investigative committee inside Argentina’s Chamber of Deputies has launched a scathing remaining report on the collapse of the Libra cryptocurrency, recommending that the Nationwide Congress assess whether or not President Javier Milei suffered “misconduct” whereas in workplace for his position in selling the token.

Milei had promoted the Libra cryptocurrency, aimed toward kick-starting financing for small home companies, with an X-post from his private account that he later deleted after 8 wallets associated to the Libra crew paid out $107 million.

The report, titled ‘$LIBRA WAS NOT AN ISOLATED EVENT’, concludes that the widespread losses related to the token weren’t simply the results of poor oversight, however arguably the results of a ‘deliberate need to avoid institutional controls’.

A abstract of the ultimate issues of the 200-page report, offered to The Block by Juan Marino, an Argentine politician and the secretary of the investigative committee, concluded: “Javier Milei concerned the presidential inauguration to successfully make the alleged $LIBRA rip-off occur: with out his tweet, $LIBRA wouldn’t have had the quantity of purchases.”

Milei has denied wrongdoing within the scandal and in Might disbanded an investigative crew arrange by his workplace to research the Libra scandal and its connections to Milei and his sister Karina Milei, days after a decide requested Argentina’s Central Financial institution to unseat the financial institution accounts of each the president and his sister.

Milei and the founders of Libra, together with American entrepreneur Hayden Davis, are dealing with a authorized investigation in Argentina, in addition to a category motion lawsuit from Burwick Regulation, a New York-based agency that makes a speciality of cryptocurrency scams.

The report claims that 114,410 wallets misplaced cash buying and selling Libra.

A ‘sample’ of misconduct

Though Libra’s collapse in February 2025 attracted probably the most worldwide consideration, the fee’s report outlines a sample of habits that started months earlier. Researchers labeled the launch of the KIP protocol in December 2024 as a factual precedent.

In line with the fee, President Milei publicly validated KIP shortly earlier than the liquidity swimming pools had been depleted, a collection of occasions that had been repeated with $LIBRA. On-chain evaluation cited within the report claims that operator Manuel Terrones Godoy transformed $KIP tokens into USDT and transferred funds to accomplice Mauricio Novelli on the identical day because the token’s public launch.

The committee said that this repetition “makes believable the speculation” that the federal government systematically bypassed technical companies such because the Nationwide Securities Fee (CNV) to facilitate these tasks.

“In each instances, the cryptocurrencies had been launched after receiving some type of public validation from the nation’s president, after which liquidity sources had been emptied, producing an abrupt value drop,” the report mentioned.

Milei’s promotion of the KIP protocol has not beforehand acquired the identical consideration because the Libra scandal. “Whereas $KIP didn’t set off the results of $LIBRA — on condition that the latter relied on sustained presidential promotion by way of an hours-long pinned tweet — it did set a factual and non permanent precedent,” the report mentioned.

The committee additionally discovered that Milei had promoted an NFT recreation known as ‘Vulcano’, created by Novelli, and ‘CoinX’, an organization raided by the judiciary within the context of a fraud investigation launched in 2022.

Lawmakers from Milei’s La Libertad Avanza social gathering reportedly attended Tuesday’s investigative committee assembly, according to El Paisand “rejected the report, arguing that the opposition didn’t achieve sufficient assist to maneuver it ahead,” though lawmakers didn’t current an alternate proposal.

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