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The article was first published on TurkishNY Radio.
A congressional commission in Argentina has concluded that President Javier Milei used his public office to promote the LIBRA token. The finding follows a months-long investigation.
Lawmakers say the LIBRA token was pushed without oversight. They warn that the move exposed investors to severe losses.
The final report says the president helped legitimize the token through his social media activity. His post about the token’s purchase contract gave it broad visibility.
Investigators Outline LIBRA Token Liquidity Collapse
The commission also named his sister, Karina Milei, for her role in arranging access for the project’s promoters. Lawmakers say the LIBRA token may be part of an international fraud scheme.
Investigators describe the LIBRA token launch as a classic rug-pull pattern. They claim that insiders concentrated on tokens early.
A public figure then promoted the asset. Liquidity later vanished. More than 114,000 wallets suffered losses. Many investors lost large sums. Only a small group saw major profits. The commission also reported obstruction from government offices.
President Accused of Boosting LIBRA Token
The commission states that the president’s post on his X account gave the LIBRA token a large push. The post was shared widely. Many investors saw it as an official signal. Lawmakers argue that a public endorsement from a head of state can shape market behavior.
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The report highlights the role of Karina Milei. It says she arranged meetings in the presidential palace. These meetings involved the creators of the token.
The document says her involvement blurred the line between government roles and private ventures. Lawmakers warn that such actions undermine public trust.
Alleged Rug Pull Pattern Identified
The LIBRA token, according to investigators, followed a predictable fraud model. First, developers held a large share of the supply. Then, the president’s endorsement drove heavy buying. Soon after, liquidity dropped.
The result was massive losses. The report says 498 wallets lost more than $100,000 each. Another 3,144 wallets lost between $10,000 and $100,000. Only 36 wallets saw large profits.
Losses Spread Across Argentina and Beyond
The token attracted many small investors. Many bought the asset after seeing the president’s post. The crash hit them hard.
The commission says the state failed to warn buyers. It also failed to study the project before promoting it. Lawmakers argue that this created unnecessary risk.
Key Figures Behind LIBRA Token Identified
The report names American businessman Hayden Davis. It also names Argentines Mauricio Novelli and Manuel Terrones Godoy. All three were involved in launching the token.
The commission found records showing that they gained authorized access to government buildings. Lawmakers say this access strengthened the token’s appearance of legitimacy.
Government Officials Accused of Blocking Inquiry
The commission says some officials refused to cooperate. It names Justice Minister Mariano Cúneo Libarona, Anti-Corruption Office head Alejandro Melik, and former investigation chief Florencia Zicavo.
They will be formally reported for non-cooperation. Lawmakers say the resistance slowed their work.
Ruling Party Rejects the Claims
Members of the ruling party dismissed the report. They say the commission acted without legal basis. They accuse it of political motives.
They argue that the LIBRA token case belongs to the courts, not Congress. Opposition lawmakers say this defense ignores ethical concerns and public duties.
Judge Orders Asset Freeze in LIBRA Token Case
A federal judge is also investigating. Judge Marcelo Martínez de Giorgi ordered a freeze on the assets of Hayden Davis.
He aims to secure funds linked to the token. Authorities estimate the amount at up to $120 million. The freeze blocks any attempt to move money offshore.
Conclusion
The LIBRA token controversy has grown into a major political and legal dispute. The congressional findings point to ethical breaches and financial harm.
Federal courts now control the next steps. The case continues to test Argentina’s political climate and investor confidence.
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Appendix Glossary key terms,
Rug Pull: A tactic where developers withdraw liquidity after attracting investors, causing heavy losses.
Digital Wallet: A blockchain address used to store, send, or receive cryptocurrencies.
Liquidity Withdrawal: The removal of funds that support token trading, often signaling market collapse.
Parliamentary Commission: A legislative group formed to investigate the LIBRA token case.
Asset Freeze: A legal order preventing individuals from moving or transferring funds under investigation.
Public Endorsement: The act of a public figure promoting a financial product, often influencing investor behavior.
Frequently Asked Questions About LIBRA Token
1- What is the LIBRA token case about?
The case centers on claims that the president promoted the token without oversight.
2- How many people lost money?
More than 114,000 wallets reported losses.
3- Were government officials involved?
The report links several officials to access approvals and non-cooperation.
4 – What legal actions are underway?
A federal judge ordered an asset freeze tied to the token investigation.
