Argentine President Milei Accused of Enabling $LIBRA Rug Pull in Congressional Report

A new congressional report from Argentina's Chamber of Deputies has accused President Javier Milei of providing "essential collaboration" to the $LIBRA cryptocurrency project, which collapsed in a rug pull that wiped out over $107 million in investor funds. The 200-page document, released by an opposition-led investigative committee, claims that Milei's social media endorsement, including a pinned tweet during the token's launch, used "the authority of the presidency" to legitimize $LIBRA, contributing to its explosive growth to a $4.5 billion market cap before it crashed over 80% in hours, leaving 114,410 wallets with losses.

The report highlights a pattern of similar behavior, linking Milei's promotions to earlier projects like the KIP Protocol, where liquidity pools were drained shortly after his validation, as well as an NFT game called Vulcano and a company named CoinX, which faced fraud investigations. Investigators allege that in both $LIBRA and KIP cases, insiders cashed out millions, with on-chain analysis showing funds transferred to associates like Mauricio Novelli.

Legal pressures are intensifying, with the report submitted to Argentina's judiciary amid an active investigation and a class-action lawsuit filed by New York-based Burwick Law on behalf of international investors. Milei has denied wrongdoing, disbanded a state investigative task force, and refused to cooperate with inquiries, while his administration faces accusations of a "total lack of cooperation." The scandal underscores broader concerns about digital asset accountability and political influence in Latin America.