Scandal Erupts as $99 Million Exits Libra Token’s Liquidity Pool
LIBRA
X
USDC
X
PI
- $99 million was withdrawn from the liquidity pool of the Libra token by wallets tied to its creator.
- Over 70% of wallets trading $LIBRA reported losses, totaling $251 million.
A major crypto scandal has erupted in Argentina. Around $99 million worth of cryptocurrency was withdrawn from the liquidity pool of the Libra token ($LIBRA), raising concerns about insider involvement. Blockchain analytics firms Chainalysis and Nansen traced the withdrawals to wallets linked to the token’s creator.
Chainalysis reported that eight wallets withdrew approximately $99 million from the token’s liquidity pool. These wallets had received tokens directly from the coin’s creator, indicating close ties to the launch team. The withdrawn assets included USDC and Solana (SOL). Nansen confirmed that wallets connected to the Libra launch still hold about $87 million.
President Milei’s Involvement Under Investigation
Argentina’s President Javier Milei endorsed the Libra token on X (formerly Twitter) late Friday. His post triggered a buying frenzy, pushing the token above $4.50. However, the price crashed within hours. Milei deleted the post and denied any connection to the token’s creators.
A federal judge is now investigating the token’s launch and Milei’s potential ties to it. The president dismissed the allegations, accusing political rivals of exploiting the situation. Despite his denial, he admitted to meeting the team behind Libra. The sudden collapse of Libra raised suspicions of a potential “rug pull” scam.
Hayden Davis, who claimed to be a “launch advisor” for Libra, rejected these accusations. He stated that the collapse was a failed plan, not a scam. Davis admitted to controlling nearly $100 million from the Libra marketplace. He promised to reinvest the funds instead of taking them for personal gain.
From Sunday to Tuesday, 70% of wallets trading $LIBRA recorded losses. Nansen estimated that 86% of traders, or 15,430 wallets, sold at a loss, leading to $251 million in realized losses.
Highlighted Crypto News Today
Will Pi Coin price Surge to $10 After Mainnet Launch?
