The LIBRA token, initially attracting attention due to its significant rise, is embroiled in scandal over allegations of bribery and political influence.
Allegations Against LIBRA Creator
Hayden Davis, the creator of the LIBRA token, claims he paid Karina Milei, the sister of Argentine President Javier Milei, to gain access to the president and influence government decisions. Allegedly, in messages obtained by CoinDesk, Davis boasted about his influence, stating, 'I control that n***a. I send money to his sister, and he signs whatever I say and does what I want.' Davis denies sending such messages, claiming no record of them on his phone. His official statement noted, 'Recent media reports claiming I paid the President's family to launch LIBRA are entirely false.'
Crash and Insider Trading
LIBRA, launched on the Solana blockchain, quickly reached a market cap of $4.5 billion before its price crashed by 95% in hours. Davis and his firm Kelsier Ventures reportedly profited over $100 million from the rise and fall. Blockchain analysis revealed that eight wallets associated with the LIBRA team withdrew $107 million before the crash, raising insider trading suspicions.
President's Reaction and Political Fallout
President Milei promoted LIBRA on his X (formerly Twitter) account on February 14, boosting the token's surge. However, he deleted the tweet five hours later. In an interview, the president stated, 'I did not promote it, I just spread the word.' Opponents argue his endorsement was key in misleading investors, calling for an investigation dubbed 'Criptogate.' Argentine lawyers have accused Milei of being part of an 'illicit association' aimed at defrauding investors. The president's administration called for an anti-corruption investigation into officials linked to LIBRA, which critics view as an attempt to diffuse responsibility.
The LIBRA scandal continues to unfold, drawing attention to transparency and ethics in the cryptocurrency industry. This situation highlights the need for stricter regulation and oversight of digital assets.
