Catenaa, Tuesday, February 25, 2025 – KIP Protocol has issued an official statement denying any involvement in the controversial launch of the LIBRA token, following widespread fraud allegations that rocked the crypto industry.
The company clarified that it was invited only on February 13, 2025, to assist in a financing initiative for Argentine small and medium enterprises (SMEs), unrelated to the token’s creation or sale.
KIP emphasized that it did not create, promote, or profit from the LIBRA token. The company denied any connection to the token’s official website, which was managed by Hayden Davis and Kelsier Ventures, and made clear it had no relationship with Argentine President Javier Milei, aside from a brief meeting in October 2024 at the Tech Forum Argentina.
KIP Protocol also stated it had no knowledge of the LIBRA project before its public debut and did not hold any tokens or funds linked to it.
The LIBRA token was launched on February 15, 2025, with a brief endorsement from President Milei, which spiked the token’s price from $0.34 to $0.75.
However, after Milei deleted his post, the token’s value collapsed, prompting accusations of market manipulation and insider trading. Investigations revealed that the token’s official website was created just an hour before launch, fueling suspicion of fraudulent activity.
Additionally, co-founder Hayden Davis admitted to manipulating the token’s launch, further intensifying scrutiny.
The fallout has extended to the platform hosting most of LIBRA’s trading, Meteora, and its co-founder Ben Chow, who resigned after facing mounting pressure.
Over 86% of LIBRA investors suffered significant losses, amounting to $251 million in realized losses. Binance’s CEO, Changpeng Zhao, has since donated funds to victims of the scam, pledging to support those affected.
