A significant crypto scandal has emerged in Argentina involving the Libra token. Around $99 million was suddenly withdrawn from the liquidity pool, raising suspicions of insider involvement.
Funds Withdrawn from Liquidity Pool
Blockchain analytics firms Chainalysis and Nansen traced the withdrawals to wallets associated with the token's creator. Chainalysis found that eight wallets withdrew around $99 million from the liquidity pool. These wallets received tokens directly from the creator, indicating a close connection to the launch team. The withdrawn assets included USDC and Solana (SOL). Nansen noted that wallets linked to the Libra launch still hold about $87 million.
Role of Argentina's President
Argentina's President Javier Milei endorsed the Libra token on X (formerly Twitter), causing a buying surge that pushed the token's price above $4.50. However, the price quickly plummeted, leading Milei to delete his post and deny any ties to the token's creators.
Investigation and Allegations
A federal judge is now investigating the launch of the token and Milei's potential connections. The president dismissed the allegations, claiming political rivals are exploiting the situation. Despite his denials, he acknowledged meeting the Libra team. The sudden drop in the token's value has led to suspicions of a 'rug pull' scam. Hayden Davis, who identified himself as a 'launch advisor' for Libra, refuted the scam claims, stating that the collapse was due to a failed plan rather than a scam.
The crypto scandal with Libra in Argentina affects high political levels and raises many questions about the security of investing in such projects.
