Key Points:
- Libra Memecoin Scandal heats up as Argentina seeks to freeze $110M.
- President Milei’s deleted post fueled LIBRA’s rise before a 90% crash.
- Hayden Davis admitted holding $110M in proceeds, sparking legal action.
- The case raises questions about social media’s influence on crypto markets and potential regulatory responses.
Libra Memecoin Scandal escalates as Argentina seeks to freeze $110M tied to the project, following a crash that left investors with $250M in losses.
This case could set a legal precedent for crypto regulations in Argentina, marking one of the first government crackdowns on memecoins following alleged insider activity. Authorities are investigating whether social media influence was deliberately used to pump and dump LIBRA, mirroring previous cases in the broader crypto market.
Argentina Cracks Down on Libra Memecoin Scandal
The Libra Memecoin Scandal has taken a legal turn as Argentine federal prosecutor Eduardo Taiano moves to freeze $110 million linked to the project.
The investigation targets financial misconduct surrounding the Solana-based memecoin, which saw its valuation soar to $4.5 billion after President Javier Milei promoted it on social media. However, after Milei deleted his post and distanced himself, LIBRA plummeted by 90%, leaving investors with massive losses worth over $250m.
Prosecutors are now working to retrieve Milei’s deleted posts, review his phone records, and examine visitor logs from the presidential office, signaling deeper scrutiny of his involvement.
Hayden Davis Admits Holding $110M from Libra’s Launch
In a revealing interview, Hayden Davis, CEO of Kelsier Ventures, admitted to holding $110 million from LIBRA’s launch—$100 million in stablecoins and $13 million in LP fees. Davis, who previously claimed to advise Milei’s team, is now a central figure in the scandal.
Despite the controversy, neither Milei, Davis, nor entities like KIP Protocol have faced legal repercussions. The fallout has also hit the broader crypto market, with Solana-based memecoins suffering a liquidity drain and trading volume on the pump.fun plummeting by 94%. SOL itself dropped from $180 to $150, reflecting the turmoil caused by the scandal.
As authorities intensify their probe, the case may set a precedent for future crypto-related investigations in Argentina.
| 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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