Argentina President Orders Probe Into LIBRA Memecoin Over Insider Trading, Misconduct Claims

Highlights:

• President Milei ordered a comprehensive probe into the LIBRA token launch amid widespread allegations.
• Argentina’s Anti-Corruption Office and task force will scrutinize government involvement and misconduct.
• The LIBRA token crashed by over 95% after launch, igniting investor doubts and insider trading claims.

In a Feb. 16 X post, the Office of the President of Argentina announced President Javier Milei’s decision to investigate the Solana memecoin LIBRA launch and its connections to all involved entities and individuals. The decision follows concerns about the project’s legitimacy, leading Milei to delete a promotional social media post. The investigation will determine if any wrongdoing occurred in the cryptocurrency’s launch.

Milei Orders LIBRA Memecoin Probe, Establishes Task Force

According to the statement, Argentina’s Anti-Corruption Office (OA) will investigate and determine if any government official, including Milei, engaged in misconduct. To ensure transparency, Milei has ordered the creation of an Investigation Task Unit (UTI) within the Presidency. It will include experts from government agencies focused on cryptocurrency regulation, finance, and anti-money laundering.

The goal is to gather and analyze all data on the LIBRA token, the company behind the coin, and those involved. The findings will be submitted to judicial authorities to determine if any legal violations occurred. The President’s office reaffirmed Milei’s commitment to clarifying the situation and holding any wrongdoers accountable.

La Oficina del Presidente informa que el pasado 19 de octubre el Presidente Javier Milei mantuvo un encuentro con los representantes de KIP Protocol en Argentina en el que se le comentó la intención de la empresa de desarrollar un proyecto llamado “Viva la Libertad” para…

— Oficina del Presidente (@OPRArgentina) February 16, 2025

Argentina’s President Endorses LIBRA Memecoin, Then Deletes Post

Milei promoted the LIBRA on X late Friday, claiming funds would support small businesses in Argentina. He stressed that the project was privately managed and later clarified that he would not profit personally. The token’s name appears linked to his political party, La Libertad Avanza, or his libertarian views. 

As concerns grew, community notes on X warned about the token and crypto scams like “rug pulls,” where developers vanish after investors buy in. Five hours later, Milei deleted the post. He said he was unaware of the project’s details and chose to stop supporting it after learning more.

The public reaction grew stronger after President Milei deleted his social media post about LIBRA. However, in a recent statement, the Office of the President stated that Milei regularly shares posts supporting new businesses and investments in Argentina and was not involved in the development of the cryptocurrency. The president removed the post to avoid further speculation regarding government involvement.

LIBRA Token Crashes After Initial Surge

The LIBRA token briefly surged, pushing its market cap close to $4.5 billion. However, concerns over its legitimacy triggered a massive sell-off, causing an over 95% drop in the token’s price.

After statements from President Javier Milei and the KIP Protocol, the token saw a strong recovery. At the time of writing, it was trading at $0.4356, up 96% from its intraday low of $0.124. However, it remains 57% below its all-time high of $1.03. LIBRA’s market cap is now $225 million.

The LIBRA memecoins’s rapid collapse, insider trading claims, and Milei’s controversial endorsements have caused significant losses. Investors are left uncertain about the token’s future, raising doubts about its market integrity.

KIP Protocol CEO Denies Direct Involvement

Further adding to the situation, KIP Protocol CEO Julian Peh stated in a Feb. 15 X space that the company was hired to help distribute funds to businesses in Argentina. He clarified that the KIP Protocol didn’t create or profit from the LIBRA token. However, he didn’t provide details on other entities involved, increasing concerns about the project’s legitimacy and its future in the market.

Am putting out a preliminary response to $LIBRA: a longer one will follow:

As per President Milei’s original post a few hours back, Project Libertad was done to boost the Argentine economy by funding small projects and local businesses, supporting those who seek to grow their…

— Julian @ 𝗞𝗜𝗣 ㊋⫸ (@julian_kip) February 15, 2025