An investigative committee within Argentina’s Chamber of Deputies has released a scathing final report on the collapse of the Libra cryptocurrency, recommending that the National Congress assess whether President Javier Milei suffered “misconduct” while in office for his role in promoting the token.
Milei had promoted the Libra cryptocurrency, aimed at kick-starting financing for small domestic businesses, with an X-post from his personal account that he later deleted after 8 wallets related to the Libra team paid out $107 million.
The report, titled ‘$LIBRA WAS NOT AN ISOLATED EVENT’, concludes that the widespread losses associated with the token were not just the result of poor oversight, but arguably the result of a ‘deliberate desire to circumvent institutional controls’.
A summary of the final considerations of the 200-page report, provided to The Block by Juan Marino, an Argentine politician and the secretary of the investigative committee, concluded: “Javier Milei involved the presidential inauguration to effectively make the alleged $LIBRA scam happen: without his tweet, $LIBRA would not have had the volume of purchases.”
Milei has denied wrongdoing in the scandal and in May disbanded an investigative team set up by his office to investigate the Libra scandal and its connections to Milei and his sister Karina Milei, days after a judge asked Argentina’s Central Bank to unseat the bank accounts of both the president and his sister.
Milei and the founders of Libra, including American entrepreneur Hayden Davis, are facing a legal investigation in Argentina, as well as a class action lawsuit from Burwick Law, a New York-based firm that specializes in cryptocurrency scams.
The report claims that 114,410 wallets lost money trading Libra.
A ‘pattern’ of misconduct
Although Libra’s collapse in February 2025 attracted the most international attention, the commission’s report outlines a pattern of behavior that began months earlier. Researchers labeled the launch of the KIP protocol in December 2024 as a factual precedent.
According to the commission, President Milei publicly validated KIP shortly before the liquidity pools were depleted, a series of events that were repeated with $LIBRA. On-chain analysis cited in the report claims that operator Manuel Terrones Godoy converted $KIP tokens into USDT and transferred funds to partner Mauricio Novelli on the same day as the token’s public launch.
The committee stated that this repetition “makes plausible the hypothesis” that the government systematically bypassed technical agencies such as the National Securities Commission (CNV) to facilitate these projects.
“In both cases, the cryptocurrencies were launched after receiving some form of public validation from the nation’s president, after which liquidity sources were emptied, generating an abrupt price drop,” the report said.
Milei’s promotion of the KIP protocol has not previously received the same attention as the Libra scandal. “While $KIP did not trigger the effects of $LIBRA — given that the latter relied on sustained presidential promotion via an hours-long pinned tweet — it did set a factual and temporary precedent,” the report said.
The committee also found that Milei had promoted an NFT game called ‘Vulcano’, created by Novelli, and ‘CoinX’, a company raided by the judiciary in the context of a fraud investigation launched in 2022.
Lawmakers from Milei’s La Libertad Avanza party reportedly attended Tuesday’s investigative committee meeting, according to El Paisand “rejected the report, arguing that the opposition did not gain enough support to move it forward,” although lawmakers did not present an alternative proposal.
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