The Libra Memecoin scandal intensifies as Argentina freezes $110 million linked to the project after a crash left investors in losses.
Argentina Takes Action on Libra Memecoin
The Libra Memecoin scandal has entered a legal phase as Argentine federal prosecutor Eduardo Taiano moves to freeze $110 million linked to the project. The investigation focuses on financial misconduct surrounding the memecoin, which surged to a valuation of $4.5 billion following promotion by President Javier Milei on social media. After Milei deleted his posts and distanced himself from the project, Libra plummeted by 90%, leaving investors with losses exceeding $250 million.
Hayden Davis' Admission
In an interview, Hayden Davis, CEO of Kelsier Ventures, admitted to holding $110 million from Libra's launch—$100 million in stablecoins and $13 million in LP fees. Davis, who previously claimed to advise Milei's team, is now a central figure in the scandal. Despite this, neither Milei nor Davis have faced legal consequences.
Impact on the Crypto Market
The scandal has affected the broader crypto market: Solana-based memecoins experienced a liquidity drain, and trading volumes on pump.fun plummeted by 94%. SOL fell from $180 to $150, reflecting the turbulence caused by the scandal. The intensification of the investigation by authorities may set a precedent for future crypto-related investigations in Argentina.
This case could set a legal precedent for crypto regulations in Argentina, raising questions about social media's influence on crypto markets and potential regulatory responses.
