Argentinian President Javier Milei faces a deepening crypto scandal over his involvement in the Libra rise and fall last weekend.
A new revelation that over $99 million was withdrawn from the liquidity pool of the memecoin has just come to light.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.
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.
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