A new revelation that over $99 million was withdrawn from the liquidity pool of the memecoin has just come to light.
According to Reuters, citing blockchain firm Chainalysis, eight wallets withdrew significant funds from Libra’s liquidity pool. Although the owners remain unidentified, Chainalysis confirmed that these addresses received tokens directly from Libra’s creator.
“The on-chain behavior suggests these addresses are closely related to the Libra creator, as they were funded directly from the project,” Chainalysis told Reuters.
The controversy erupted on February 14, when Milei endorsed the $LIBRA token in an X post, triggering a buying frenzy that pushed its price above $4.50 before it crashed within hours.
𝗝𝗮𝘃𝗶𝗲𝗿 𝗠𝗶𝗹𝗲𝗶’𝘀 𝗔𝗹𝗹𝗲𝗴𝗲𝗱 𝗜𝗻𝘃𝗼𝗹𝘃𝗲𝗺𝗲𝗻𝘁 𝗶𝗻 𝗟𝗜𝗕𝗥𝗔 𝗧𝗼𝗸𝗲𝗻 𝗦𝗰𝗮𝗻𝗱𝗮𝗹 𝗦𝗵𝗮𝗸𝗲𝘀 𝗔𝗿𝗴𝗲𝗻𝘁𝗶𝗻𝗮’𝘀 𝗖𝗿𝘆𝗽𝘁𝗼 𝗠𝗮𝗿𝗸𝗲𝘁
Massive crypto scandal shakes Argentina! Investors lose millions as LIBRA token crashes after Milei’s… pic.twitter.com/sKgywnMsBs
— Analytics Insight (@analyticsinme) February 20, 2025
Milei later deleted the post and denied any ties to the token’s creators, though he admitted to meeting them. He insisted his post was not investment advice, dismissing the scandal as a politically motivated attack.
However, the token’s sudden collapse has led to a federal investigation into its launch and Milei’s possible ties to it. The president has dismissed the scandal as a politically motivated attack, accusing his opponents of exploiting the situation against him.
Adding to the controversy, Jupiter, a decentralized exchange, disclosed on February 17 that some of its team members had prior knowledge of a potential Argentina-linked token. However, they claimed they lacked details such as its timing or contract address.
Jupiter stated that Kelsier Ventures, an investment firm, had informed them about the project two weeks earlier, confirming Milei’s involvement. The DEX’s team denied insider trading, stating they never received $LIBRA tokens or compensation. They clarified that it listed $LIBRA only after public confirmation and sufficient market volume.
Also Read: Binance Co-Founder Changpeng Zhao Issues New Warning About Scammers Using Fake Accounts
The investigation is still ongoing in 2026
The case has not disappeared with the token’s collapse. In March 2026, Argentine investigators reportedly uncovered evidence on the phone of businessman Mauricio Novelli, who was identified as a link between Milei and $LIBRA creator Hayden Davis.
Investigators found records of multiple communications between Milei and Novelli around the February 14, 2025 launch. A separate investigation also reported an alleged $5 million agreement connected to Milei’s promotion of $LIBRA, although the allegation remains part of an ongoing investigation and has not been established as fact in court.
More recently, an August 2026 investigation reported that approximately $5 million transferred by Hayden Davis before the launch ultimately reached a financial firm associated with Novelli. Milei has denied wrongdoing and has maintained that his promotion of $LIBRA was not part of a coordinated scheme.
In June 2026, prosecutors reportedly said their investigation into the crypto transactions had been slowed because a tool used to trace blockchain movements was no longer available to them. The case was subsequently referred to Argentina’s Federal Police, which had access to the required technology.
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