TLDR
- President Milei made waves on X when he publicly praised the LIBRA token as a potential economic boost for Argentina, only for the coin to soar by 3,223% and then crash by 90% just hours after he inexplicably removed his social media post.
- A team of lawyers has taken aim at Milei, charging him with fraud and asserting that his endorsement played a pivotal role in what they claim to be a 'rug pull'-styled con.
- Delving into the blockchain, analysts pointed out dodgy wallet maneuvers, noting that the apparent mastermind walked away with $87 million, while an unnamed insider pocketed $5 million in USDC.
- The project's visionary, Hayden Davis, lashed out at Milei’s camp for abruptly withdrawing support despite previously expressed commitments.
- In a devastating blow, the token shed over 96% of its height in value, wiping out $4.4 billion from the market landscape.
Due to President Javier Milei's championing of a cryptocurrency, fraud allegations have arisen after the touted token nosedived by 96% in mere hours. The incident, taking place on February 14, 2025, has sparked outrage from political adversaries and set the stage for formal legal proceedings. Milei leveraged his X presence to plug the LIBRA token as a private venture aimed at stimulating the Argentine economy by backing small enterprises. He even added a hyperlink to the Viva La Libertad Project site.
The public wasted no time responding to the president's nod of approval. Almost immediately after the announcement, the token’s value surged to a jaw-dropping 3,223%, ballooning its market cap to over $4 billion before the rally met its demise.
A mere five hours post-announcement, Milei erased his endorsement from X. In an ensuing message, he expressed unawareness of the project details before disseminating it to his 3.8 million followers, following which the token shed 90% of its value.
The KIP Protocol head honcho, Hayden Davis, vented on X, claiming that the Milei team went back on their word, retracting their backing and wiping out all social media mentions.
Blockchain snoops have unearthed troubling patterns in the token's trading dance. Lookonchain points to a sketchy payout of $5 million in USD Coin (USDC) to an unnamed insider, with rampant speculation tying this to Dave Portnoy, supposedly swapping LIBRA token promotions for tokens.
Trading Patterns
The launch was on the cards, but delayed purchases meant losses of 26,577.
Someone knew in advance that $LIBRA Be that as it may, this individual seems to have been compensated with a hefty $5M. $SOL ($5.34M).
Bubblemaps' probing revealed that a whopping 82% of LIBRA's total supply lay in the hands of a solitary wallet cluster. The investigation linked this wallet to past tokens like TRUST, KACY, VIBES, and HOOD, suspected of being pump-and-dump games. $USDC .
1/ Let's dive into the story on-chain. pic.twitter.com/KiHhQaQn2z
— Lookonchain (@lookonchain) February 17, 2025
According to reports, the creator’s wallet cashed out an $87 million windfall post-launch through sneaky side addresses. Bubblemaps hints that this creator has likely pocketed over $100 million across similar schemes.
They made a whopping $87 million by snagging USDC and SOL from the liquidity pool.
$LIBRA TEAM IS CASHING OUT
On February 17, legal eagles took formal steps against President Milei. Lawyer Jonatan Baldiviezo argued that the president's antics matched a typical 'rug pull' trap where the developers vanish after pulling in investors. https://t.co/hRGnRPTDiE pic.twitter.com/aiDmODKi6o
— Bubblemaps (@bubblemaps) February 15, 2025
The accusation outlines a plot described as an 'illicit association' involving multiple unspecified frauds, where Milei's involvement was deemed instrumental in the alleged con.
The political heat is on, with previous President Cristina Fernández de Kirchner accusing Milei of misleading actions. There's a push among lawmakers for a congressional probe and possibly impeachment.
Milei’s government is working to brush the affair off as standard entrepreneurial encouragement. Meanwhile, the president has vowed to investigate if any inside foul play occurred.
The Anti-Corruption Office has picked up the baton to look into this case. A judge is set to dive into the evidence soon to decide if the charges need pursuing or passing on to a prosecutor.
Despite one trader foreseeing LIBRA's takeoff and still investing late, resulting in over a $5.3 million crypto loss, similar value dips are noted in other meme tokens, including the heavy-hitting 84% drop since launch of the Official Melania Meme coin.
Drawing lines to President Donald Trump’s unexpected meme coin entrance back in December 2024, this affair emphasizes the deepening ties between political figures and token marketing.
As of February 17, 2025, LIBRA's valuation remains a shadow of its former glory, 96% below its zenith, representing a staggering loss of $4.4 billion.
Maisie boasts a seasoned background in Crypto & Financial reporting, having penned for renowned outlets like Moneycheck.com, level-up-casino-app.com, Computing.net, and serving as Editor-in-Chief at Blockfresh.com.
