LIBRA Scandal: Argentina Moves to Freeze $110M
LIBRA Scandal Deepens as Argentina Investigates and Freezes $110M in Suspected Funds. Authorities probe potential market manipulation via social media.
| Key Takeaways: – LIBRA Scandal intensifies as Argentina seeks to freeze $110M tied to the project. – The Solana-based memecoin collapsed 90% after Milei distanced himself. – Investigators are probing possible insider activity and social media manipulation. |
The LIBRA Scandal has escalated as Argentine prosecutors move to freeze $110 million linked to the controversial memecoin.
Initially soaring to a $4.5 billion market cap after Argentine President Javier Milei promoted it on social media, the Solana-based token saw a sudden collapse when Milei deleted his posts and distanced himself from the project. Now, prosecutors are scrutinizing whether social media influence was used to manipulate the market.
Federal prosecutor Eduardo Taiano is spearheading the legal action, examining whether key figures engaged in market manipulation. Authorities are retrieving Milei’s deleted posts, reviewing his phone records, and investigating visitor logs to assess any possible connections to insider trading.
The investigation follows a dramatic 90% price crash, which left investors with over $250 million in losses.
A major development in the LIBRA Scandal is the involvement of Hayden Davis, CEO of Kelsier Ventures, who admitted to holding $110 million in LIBRA’s launch funds. Despite claiming to have advised Milei’s team, Davis has not faced formal charges. His company reportedly controlled $100 million in stablecoins and $13 million in liquidity pool fees, raising further concerns about fund distribution.
The fallout from the LIBRA Scandal has extended beyond the memecoin itself. Solana-based memecoins saw a liquidity drain, with trading volumes on the pump.fun plummeting 94%. Even SOL’s price dropped from $180 to $150 as investor confidence wavered.
While no legal charges have been filed against Milei, Davis, or KIP Protocol, Argentina’s response could set a precedent for future crypto investigations. With regulators intensifying scrutiny, the LIBRA Scandal may become a landmark case in shaping Argentina’s stance on digital assets.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
