The crypto world is simmering with a new scandal surrounding the LIBRA Token, entangling Argentine President Javier Milei and his sister Karina. Allegations of government influence and the sudden cryptocurrency crash have sparked international discussions.
Allegations and Statements
LIBRA Token creator Hayden Davis allegedly claimed to have paid Karina Milei for access to the president’s inner circle and to influence government decisions. Davis allegedly bragged about his influence, stating that he could make President Milei sign and promote anything for money sent to his sister. However, Davis denies sending such messages, claiming he has no records of them on his phone. His spokesperson issued a statement refuting the claims of payments to the president or his sister for launching the LIBRA token.
LIBRA Token and Its 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 netted over $100 million from the token’s rise and fall. Reports indicate Davis’ team dumped large amounts of LIBRA tokens before the price collapse, raising concerns about insider trading. Blockchain analysts revealed eight wallets associated with the LIBRA team withdrew $107 million before the crash.
President Milei's Response
President Milei promoted LIBRA on X on February 14, causing the token's massive surge. However, he deleted the tweet just five hours later. In an interview, he distanced himself from the project, claiming he was merely 'spreading the word.' Opposition leaders argue his endorsement misled investors and are calling for an impeachment trial. Legal experts accuse Milei of participating in an 'illicit association' 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, though critics deem this an attempt at damage control.
The LIBRA Token scandal continues to unfold, drawing attention from the public and legal analysts. The impact on investors and further government actions will be closely watched.
