Argentinian President Javier Milei has been reportedly charged with fraud over his involvement in the $LIBRA token project, which saw a dramatic rise and fall in value. Meanwhile, a key figure linked to the project, Singaporean CEO Julian Peh, denied involvement in the alleged rug pull.
A post on X by the Argentinian President helped push the newly launched token $LIBRA to a US$4.5 billion (S$6.02 billion) market cap before it crashed 95 per cent from its peak, now holding a market cap of US$232 million, The Block reported.
The private project, “dedicated to encouraging the growth of the Argentine economy by funding small Argentine businesses and startups”, according to a now-deleted post from the president, translated from Spanish, collapsed just hours after the token’s rise.
Blockchain analytics firm Lookonchain wrote on X that eight wallets linked to the $LIBRA team withdrew US$107 million shortly after its peak. Another firm, Bubblemaps, found that 83 per cent of the token’s supply was held by a small cluster of wallets.
After the crash, President Milei removed his post and withdrew his endorsement, distancing himself from the project.
Kash Dhanda, a Jupiter team member also denied any involvement in the token’s launch on X, stating, “The Jupiter team was not involved in the $Libra token launch. We didn’t do the deployment, the market making, or participate in the launch. We also did NOT pre-verify the token. we only verified it after it had crossed $1.5b in market cap.”
He added, “There were dozens of imposter tokens, and given there was an official public statement with a CA (contract address), we wanted to ensure that users were able to identify the correct token.”
Accusations of an insider rug pull followed, but Mr Peh, the Singaporean CEO and co-founder of KIP Protocol, a Web3 firm associated with the project, rejected claims of a rug pull on X, stating, “It is not a rug. The funds are on chain and will be accounted for.”
“Yes KIP is involved in the project, but our primary role is to help run the fund allocation to the Argentinian companies, and less on the token side…We would not have gotten the help we did to launch it if we were not serious,” he said.
The Block reported that he also denied profiting from $LIBRA’s crash, stating, “It’s inaccurate for me even to say that we didn’t profit from this only because…nobody has profited from this.”
KIP Protocol released a statement on X, stating, “The token launch and market making were fully handled by @KelsierVentures, represented by Hayden Davis, the initiators of the project. None of the wallets belonged to KIP or myself.”
“KIP was invited post-launch to manage / oversee the selection of funded tech projects and provide technical infrastructure for AI initiatives. Thus All matters related to the launch and tokens should be directed to Kelsier, as they were handling it and planned to transition the tokens to a foundation,” it added.
KIP also mentioned that while the token gained visibility when President Milei tweeted about it, it had no involvement in the launch, and its role was always after the token’s release.
Hayden Davis also released its statement on KelsierVentures’ X account, stating, “My primary responsibility was ensuring the token had sufficient volume, liquidity, and a robust treasury to support its price and execute on the project’s vision. However, as an advisor, there were many factors beyond my control.”
According to The Block, Argentinian lawyers, along with Claudio Lozano, former head of the country’s central bank, have reportedly charged President Milei with fraud over his involvement in the $LIBRA token project.
President Milei denied knowing about the project in advance. His administration also announced it would open its own investigation into the token project. Meanwhile, some opposition members called for an impeachment trial.
Mr Peh graduated with a Bachelor of Laws (Hons) from the National University of Singapore in 2004. He previously practised at Singapore’s top banking law firm and has experience in venture capital, startup financing, mergers and acquisitions, fund setup, and digital assets. The law firm has since removed his profile. /TISG
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