KIP Protocol distances itself from allegations, denying involvement in the LIBRA token collapse, as potential legal action looms amid growing scrutiny.
By Temitope Olatunji
Edited by Julia Sakovich
Updated
3 mins read
KIP Protocol has again denied any involvement in the LIBRA token’s creation or management. The company strongly refutes any connection to the controversial token that lost 95% of its value shortly after launch.
In a statement released on February 24, KIP Protocol addressed concerns about its alleged role in the LIBRA token, which was promoted by Argentina’s President Javier Milei before its sudden decline. The company clarified that its only connection to the situation was an invitation from Mauricio Novelli on February 13, 2025, to assist with an unrelated financing initiative for small and medium enterprises in Argentina. The statement reads:
“KIP was invited to assist in managing the project’s financing initiative for Argentinian SMEs. This invitation was made by Mauricio Novelli only on 13 February 2025, based on our past experience in running grant programs, and our ability to deploy AI infrastructure for companies.”
KIP emphasized that it did not profit from the token and received no payments or tokens. The company stated that none of the wallets involved in the token launch were connected to them. Furthermore, KIP denied any direct relationship with President Milei, except for a single meeting between its CEO Julian Peh and Milei at Tech Forum Argentina on October 19, 2024, where neither LIBRA nor Project Viva La Libertad was discussed.
The company also distanced itself from the token sale, stating that it was organized by Hayden Davis, who had admitted to initiating the launch. KIP emphasized that it never promoted the token and reiterated that it does not own any wallets linked to its transactions. Regarding its social media post that initially supported the token, the company stated:
“After the token’s launch, Novelli asked us to post on X to support the project, providing us with text in English and Spanish. At that time, President Javier Milei’s original post supporting the project was still live, which led to our continued confidence in the project’s larger objectives. We thus posted on X in support.”
In an interview with YouTuber Coffeezilla, Hayden Davis revealed that he was merely a facilitator of the LIBRA token. However, he later admitted to holding $100 million tied to the project, describing it as “leverage with certain groups and parties”.
KIP Protocol reaffirmed its commitment to transparency. The team stated that it would cooperate with authorities to clear any misunderstandings and take legal action if necessary to protect its reputation. The LIBRA token has fallen by more than 81% in the last 24 hours, indicating persistent negative sentiment.
An Argentine law firm has requested that the U.S. DOJ and FBI investigate those behind the collapse of the LIBRA token, including President Javier Milei. Additionally, Civic Coalition ARI has filed a complaint urging Argentina’s Ministry of Justice to investigate bribery and fraud allegations involving Milei’s government.
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Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor's and master's degrees in linguistics. When not writing, he trades forex and plays video games.
