Argetina’s President’s Office recently released a statement regarding the controversial project “Viva la Libertad,” which is linked with the crypto-token Libra.
The announcement came a day after the allegations of a “rug pull” scheme linked to the crypto-asset.
Accordingly, the Anti-Corruption Office (OA) said it would be intervening immediately to investigate the program.
The measure was taken following an emergency meet amid concerns about the project’s integrity and its potential impact on the Argentine government, according to a Cointelegraph report.
In a statement, the Presidential Office clarified that the investigation will focus on determining whether public officials, including President Milei, engaged in any inappropriate conduct.
Establishment of an investigation task force
President Milei also ordered the creation in the scope of the Presidency of a Task Investigation Unit (UTI).
According to Coitelegraph, this unit has been assigned to immediately investigate the creators of the cryptocurrency $LIBRA as well as all individuals and companies who are operating it.
Local reports say that this UTI will involve officials from multiple branches of the government who are “well-versed in matters concerning cryptocurrencies, financial activities, and money laundering” to be as well-rounded as possible.
This new task force calls to attention the government’s seriousness about integrity in public office and the fact that it will not “tolerate a shady cryptocurrency project doing any illegal activity in a grey area”.
Clarification on the role of government
“President Milei was not behind it”, the Presidential Office stressed. After strong public outcry over the launch of the token, President Milei deleted a previous post on his personal social media accounts announcing the introduction of the KIP Protocol project.
According to the report, the motivation behind this decision was to avoid speculation and prevent more spread of potentially inaccurate information.
Additionally, the presidency specified that despite Milei’s meeting with Hayden Mark Davis to discuss the KIP Protocol’s technological infrastructure on January 30, 2025, Davis has no links to the Argentinian national administration.
The government has promised that the meeting, attended by KIP Protocol officials Mauricio Novelli and Julian Peh, was duly scheduled in the Public Hearing Registry, which records the nature of government interactions.
A step towards transparency
The activities of the Anti-Corruption Office and the newly created Task Investigation Unit must be guided by the principles of transparency and accountability that should remain at the core of the Argentine government.
The results of this investigation could have wide implications for cryptocurrency regulation in Argentina and the future status of the Milei administration.
This investigation is unlikely to result in unambiguous consequences; however, it represents the tension between technology and government and public trust in an ever more complex financial ecosystem.
On the one hand, cryptocurrency projects, such as that of $LIBRA, may represent new investment and development opportunities; on the other hand, they also present significant crypto fraud and corruption risks.
The government’s prompt response has received mixed reactions from both the public and politicians. Some view the investigation as crucial for restoring faith in public institutions and the new administration.
Meanwhile, some argue that this is a political manoeuvre to divert attention away from the administration’s ongoing economic challenges.
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