The Libra Controversy: How Milei’s Token Endorsement Led to Chaos

Libra was at the center of a financial and political storm after Argentine President Javier Milei endorsed the token without proper due diligence. Market speculation fueled a rapid price surge, but a lack of safeguards led to an inevitable crash, costing investors millions and igniting calls for Milei’s impeachment.

Milei’s Hasty Endorsement and the Libra Token Collapse

Argentine President Javier Milei’s latest foray into cryptocurrency has left widespread financial losses and political turmoil in its wake. In a now-deleted social media post, Milei promoted Libra, a supposed economic initiative aimed at funding small and medium-sized enterprises (SMEs) in Argentina. His endorsement sent the token’s market cap soaring, reaching over $5 before plummeting below $1.

Despite its sudden rise, critical flaws soon emerged. Blockchain analytics firm Look On Chain exposed suspicious insider trading, revealing that at least 11 wallets, funded just before the public announcement, had profited a combined $43.8 million. Furthermore, wallets directly linked to the Libra team reportedly withdrew over $107 million, draining liquidity and leaving retail investors at a loss.

Realizing the fallout, Milei quickly distanced himself from the project, asserting that Libra was a private initiative and that he had no role in its launch. Kip Protocol, the alleged creator of Libra, backed this claim, stating that Milei had no official ties to the token’s development.

Political and Legal Repercussions Following the Libra Scandal

As the controversy unfolded, Kelsier Ventures, represented by Hayden Mark Davis, admitted involvement in the token launch. Davis further revealed that key figures behind Libra had gone silent, contradicting Milei’s attempt to dissociate from the project. Kelsier Ventures later disclosed that Milei’s endorsement was supposedly secured throughout the token’s launch but was abruptly revoked, leading to the token’s downfall.

This debacle has intensified scrutiny on Milei’s leadership. Opposition lawmaker Leandro Santoro has called for the president’s impeachment, stating that the scandal has damaged Argentina’s international reputation. The President’s Office has denied any wrongdoing, framing Milei’s Libra endorsement as a routine promotional gesture for Argentine entrepreneurs.

To address growing concerns, Milei has ordered the country’s anti-corruption office to investigate potential misconduct tied to the Libra launch. Additionally, an independent inquiry will examine the involvement of Kip Protocol, Kelsier Ventures, and other associated entities. The findings will be handed over to judicial authorities to determine if criminal activities took place.

As the investigation unfolds, Milei faces mounting political pressure, with critics questioning his judgment and the potential impact of this controversy on his presidency.

Make money without lifting your fingers: Start using a world-class auto trading solution.

EightCap, your trusted Partner in CFDs, Cryptocurrencies and Stocks.