Key Takeaways
- •Argentina’s congressional report links President Milei to the Libra collapse.
- •Investigators state his promotion drove widespread investor losses.
- •Congress will now decide whether to pursue misconduct action.
Allegation: Presidential Influence Created Market Conditions for Collapse
Members of President Milei’s party, La Libertad Avanza, rejected the findings and blocked the committee’s motion from advancing during a Tuesday session. However, the final document was formally submitted, meaning the issue now moves to the broader legislature regardless of the ruling party’s objections.
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, which was later deleted, preceded the moment when eight wallets linked to the project liquidated approximately $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.
The report estimates that 114,410 wallets experienced net losses after the collapse.
Already Under Judicial Scrutiny
The scandal is not limited to political hearings. President 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.
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.
Committee Argues the Libra Fallout Fits into a Repeated Pattern
Although the Libra collapse in February 2025 drew global attention, the committee also highlighted earlier examples where President Milei publicly endorsed digital-asset ventures shortly before those projects suffered liquidity failures.
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. Fiat-to-crypto exits accompanying high-profile endorsements were flagged once again with Libra weeks later.
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.
What Comes Next
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.