Libra

Crash

Bank

KIP Protocol

motion

<div class="light-yellow-block">
 <strong>Key Takeaways:</strong>
 <ul>
  <li><strong>Argentina’s congressional report links Milei to the Libra collapse.</strong></li>
  <li><strong>Investigators say his promotion drove widespread investor losses.</strong></li>
  <li><strong>Congress will now decide whether to pursue misconduct action.&nbsp;</strong></li>
 </ul>
</div>
<p>Members of Milei’s party, La Libertad Avanza, rejected the <strong><a href="https://english.elpais.com/international/2025-11-19/argentine-congressional-committee-says-milei-played-key-role-in-the-alleged-libra-scam.html" rel="noopener noreferrer nofollow">findings</a> </strong>and blocked the committee’s motion from advancing during a Tuesday session, according to reporting from El País. However, the final document was formally submitted, meaning the issue now moves to the broader legislature regardless of the ruling party’s objections.</p>
<h2 id="allegation-presidential-influence-created-the-market-conditions-for-the-collapse">Allegation: presidential influence created the market conditions for the collapse</h2>
<p>Rather than focusing on the technical failure of the token, the investigation centers on Milei’s decision to personally promote Libra from his official X account. The post — later deleted — preceded the moment when eight wallets linked to the project liquidated roughly $107 million. According to the committee, Libra would not have reached the level of trading activity necessary to produce the widespread losses seen across the market without that publicity boost.</p>
<p>The report estimates that 114,410 wallets experienced net losses after the collapse.</p>
<h2 id="already-under-judicial-scrutiny">Already under judicial scrutiny</h2>
<p>The scandal is not limited to political hearings. Milei and the Libra leadership — including U.S. entrepreneur Hayden Davis — are defendants in an ongoing criminal investigation in Argentina. In the United States, Burwick Law has filed a class-action lawsuit on behalf of holders who suffered financial damage.</p>
<p>Shortly before the release of the committee’s findings, a judge instructed the Central Bank to unseal the bank accounts of both the president and his sister Karina Milei. Days later, the president disbanded a task force originally set up by his administration to examine the Libra affair.</p>
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<h2 id="committee-argues-the-libra-fallout-fits-into-a-repeated-pattern">Committee argues the Libra fallout fits into a repeated pattern</h2>
<p>Although the Libra collapse in February 2025 drew global attention, the committee also highlighted earlier examples where Milei publicly endorsed digital-asset ventures shortly before those projects suffered liquidity failures.</p>
<p>The most significant comparison involved the KIP Protocol in December 2024. On-chain records cited in the report track transfers of $KIP to USDT by operator Manuel Terrones Godoy and then onward to associate Mauricio Novelli on the day of KIP’s public rollout. <a rel="noopener noreferrer nofollow">Fiat</a>-to-crypto exits accompanying high-profile endorsements were flagged once again with Libra weeks later.</p>
<p>The report also lists Vulcano, an NFT game linked to Novelli, and CoinX, a firm previously searched by law enforcement in a fraud probe, as examples of repeated instances of public promotion followed by market fallout.</p>
<h2 id="what-comes-next">What comes next</h2>
<p>The committee cannot impose sanctions, but it can formally request action from the National Congress — and it has now done so. It is up to lawmakers, not investigators, to decide whether to begin a political process over misconduct.</p>
<p style="text-align: center;"><em><span style="text-decoration: underline;"><strong>The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.</strong></span></em></p>
<p>The post <a href="https://coindoo.com/argentina-probe-links-president-milei-to-libra-collapse-congress-to-take-action-next/" rel="noopener noreferrer nofollow">Argentina Probe Links President Milei to Libra Collapse – Congress to Take Action Next</a> appeared first on <a href="https://coindoo.com" rel="noopener noreferrer nofollow">Coindoo</a>.</p>

Argentina Probe Links President Milei to Libra Collapse – Congress to Take Action Next

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