The creator of the LIBRA token is in the spotlight due to allegations of bribing the Argentine president's sister and the token's value crash.
Accusations Against LIBRA Creator
LIBRA token creator Hayden Davis allegedly paid Karina Milei, sister of the Argentine President Javier Milei, to enter the president's inner circle and influence government decisions. Text messages reviewed by CoinDesk reveal Davis allegedly bragged about his influence over the president.
Token's Sudden Crash
Launched on the Solana blockchain, LIBRA reached a market cap of $4.5 billion before crashing 95% within hours. Davis and his firm, Kelsier Ventures, reportedly earned over $100 million from the token's rise and fall. Analysts revealed that eight wallets associated with the LIBRA team withdrew $107 million before the crash, raising insider trading concerns.
President Milei's Response and Political Impact
President Javier Milei promoted LIBRA on Twitter on February 14, boosting the token's surge. However, he deleted the tweet five hours later, claiming he did not promote the project but merely spread the word. Opposition leaders argue his endorsement misled investors and are calling for impeachment.
The LIBRA scandal has sparked a political storm in Argentina. The presidential administration calls for an anti-corruption investigation, but opponents accuse them of damage control.
