The scandal surrounding the LIBRA token is escalating after accusations from its creator, Hayden Davis, of bribing to influence the Argentine president.
Accusations from LIBRA's Founder
The creator of the LIBRA token, Hayden Davis, claimed he paid Karina Milei, sister of Argentine President Javier Milei, to gain access to the inner circles of power and influence decisions. Text messages allegedly show Davis boasting about his influence over the president, claiming he could make him sign anything he desired with payments sent to Karina Milei. Davis denies the authenticity of the messages, stating he has no record of such messages on his phone.
LIBRA Token Crash
The LIBRA token launched on the Solana blockchain and 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. Before the crash, large amounts of tokens were sold by the team, raising suspicions of insider trading. Blockchain analysts uncovered eight wallets linked to the LIBRA team that withdrew $107 million before the collapse.
Argentine President's Response
President Javier Milei had previously promoted LIBRA on Twitter, fueling the token's surge. However, hours later, he deleted the tweet and distanced himself from the project, claiming, 'I did not promote that. I just spread the word.' Opposition leaders argue that his endorsement was crucial in misleading investors, with calls for impeachment. The incident, dubbed 'Criptogate,' has shaken Argentina’s financial markets. Legal experts accuse Milei of engaging in an 'illicit association' designed to defraud investors. The case is now under review by Argentina’s criminal justice system. In response, Milei’s administration has requested an anti-corruption investigation into all government officials linked to LIBRA. Critics view this as an attempt to mitigate damage.
The LIBRA token situation undermines trust in Argentina's financial systems and raises significant questions about transparency and ethics in the cryptocurrency world.
