Argentine President Javier Milei Causes Investors to Lose Over $250 Million After LIBRA Scandal
Key Points:
- Over 86% of traders who invested in the Libra memecoin promoted by Argentine President Javier Milei lost a combined $251 million.
- Lawyers in Argentina filed fraud complaints against Milei after he deleted his promotional tweet.
More than 86% of cryptocurrency traders who invested in LIBRA token endorsed by Argentine President Javier Milei suffered financial losses, according to blockchain research firm Nansen.
Read more: Argentina President Javier Milei Continues to Retweet About LIBRA While Controversy Remains Tensions
Crypto Investors Lose $251 Million Because of President Javier Milei’s Tweet
LIBRA resulted in an estimated $251 million in combined losses for affected investors, while a minority of traders managed to secure $180 million in profits.
Data from Nansen revealed that out of 15,430 wallets that sold LIBRA at a gain or loss exceeding $1,000, the vast majority recorded losses. Specifically, 1,478 wallets lost between $1,000 and $10,000, amounting to $4.8 million in total.
Another 2,827 wallets incurred losses ranging from $10,000 to $100,000, contributing to an $82.4 million deficit. Additionally, 392 wallets saw declines of between $100,000 and $1 million, totaling approximately $96.5 million, while 23 wallets recorded losses exceeding $1 million, summing up to $40.9 million.
The controversy erupted after President Javier Milei promoted LIBRA in a tweet on Friday, claiming the token aimed to support economic growth by funding small businesses and startups. However, the post was deleted within hours, triggering a backlash from both political opponents and investors who saw the token’s value plummet shortly after its launch.
Suspicious Transactions Raise Concerns Over LIBRA Token’s Launch
Blockchain analysts from Chainalysis reported that eight crypto wallets withdrew approximately $99 million from LIBRA’s liquidity pool, Reuters reported. Key figures linked to the token’s launch include Kelsier Ventures CEO Hayden Davis and KIP Protocol CEO Julian Peh.
The fallout intensified as legal action was initiated against the Argentine President. On Sunday, lawyers in Argentina filed fraud complaints against Milei.
In response to the controversy, Milei defended his stance, likening investors in the failed cryptocurrency to gamblers at a casino. His comments, however, did little to assuage concerns as the scandal continued to unfold but also showed one of the most significant crises of his presidency.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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