- Argentinian President’s association with LIBRA token launch led to a market cap of $4.5 billion before a 96% crash.
- Opposition lawmakers are seeking impeachment while legal actions mount against Milei for the cryptocurrency debacle.
- Project facilitator Hayden Davis admitted to team sniping at launch and claims possession of $100 million in profits.
- Eleven insider wallets collectively earned $43.8 million through coordinated trading of the token.
- KIP Protocol denied involvement in token launch management despite claimed meetings with Argentina‘s presidency.
A cryptocurrency token allegedly associated with Argentinian President Javier Milei became the center of controversy after launching on Friday, reaching a $4.5 billion market capitalization before plummeting 96%, triggering widespread accusations of market manipulation and insider trading.
The LIBRA token, initially promoted as an initiative to support Argentine small businesses, quickly devolved into scandal when Milei distanced himself from the project, deleting his earlier endorsement and claiming no knowledge of its details.
Project facilitator Hayden Davis acknowledged in an interview with Coffeezilla that the team engaged in “sniping” – a practice where traders use automated tools to purchase tokens immediately at launch for preferential prices. Davis claims to control over $100 million in profits from the operation.
Analysis firm Lookonchain identified eleven insider wallets that profited approximately $43.8 million through coordinated trading. The scandal expanded when Dave Portnoy of Barstool Sports became involved, losing $5.34 million in trades before being reimbursed by Davis.
KIP Protocol, an AI/Web3 firm implicated in the controversy, has issued statements denying involvement in the token’s launch or management, despite Argentina’s Office of the President claiming two meetings with their representatives.
The incident has sparked multiple legal challenges, with opposition lawmakers initiating impeachment proceedings against Milei, citing international embarrassment and potential fraud. The case highlights growing concerns about cryptocurrency market manipulation and the role of political figures in token promotions.
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