Argentina’s President Orders Probe Into LIBRA Crypto Controversy

Investigating LIBRA and KIP Protocol

The President’s office confirmed the investigation in an official statement, saying they want to be open about LIBRA’s connection to the KIP Protocol. The announcement came after the token’s price significantly crashed. 

This made people suspect fraud, insider trading, and price manipulation. Milei has also created a special Investigation Task Unit (UTI) in his office to dig deeper. This unit is made up of experts in cryptocurrency regulations, finance oversight, and anti-money laundering enforcement.

The task force will analyze money transfers, blockchain records, and any links between LIBRA, KIP Protocol, and related companies. Their findings will be given to the courts for further review.

KIP Protocol Says It’s Not Involved

As scrutiny intensified, the KIP Protocol said it was not part of the LIBRA launch. The company released a statement denying any involvement in the asset’s issuance or market-making activities.

Instead, KIP said Kelsier Ventures, led by Hayden Mark Davis, was in charge of the token. KIP claimed its role was only to provide technical support after the launch and manage  AI-related projects funded by the initiative.

However, many people are still doubtful. Users pointed out that KIP Protocol had previously shared posts celebrating LIBRA’s early success. This contradicts its claims of non-involvement. This has made people question KIP’s real role in the project.

Insider Trading Concerns and LIBRA’s Price Swings 

Blockchain analytics firm Lookonchain has found unusual trading activity around LIBRA’s launch. One trader reportedly spent $2.02 million to buy 5.08 million LIBRA tokens and later sold them for $6.72 million. 

Lookonchain also found 11 insider wallets that made a total of $43.8 million. These findings have raised concerns about potential insider trading and market manipulation within the project. Binance founder Changpeng “CZ” Zhao commented on the situation. 

Despite the chao surrounding LIBRA’s launch, its price has started recovering. At press time, the token is trading at $0.3669, up 81.90% from its lowest point of $0.123. However, it is still much lower than its all-time high of $1.03, reached just a day earlier.