- Cryptocurrency influencer Threadguy lost $250,000 on LIBRA token and faces allegations of insider trading.
- LIBRA token collapsed from a $4.5 billion market cap, affecting thousands of investors.
- Argentine President Javier Milei contradicted himself by denying promotion while retweeting purchase tutorials.
- Members of “LA Vape Cabal” including Faze Banks denied involvement in the token’s launch.
- Project whale Hayden Davis, holding $100 million in LIBRA, distances himself from the influencer group.
A controversial cryptocurrency token endorsed by Argentina‘s president has led to significant losses and accusations of insider trading, with influencer Threadguy facing scrutiny after losing $250,000 in the LIBRA token collapse.
The incident highlights the growing intersection of political figures and cryptocurrency markets, as Javier Milei, Argentina’s president, became embroiled in the controversy after initially denying promotion of the token while simultaneously sharing trading tutorials on social media.
During a livestream that attracted 3,000 viewers, Threadguy’s suspicious behavior raised red flags when he discussed “rumblings” about an Argentina coin. The stream became more controversial when Faze Banks called in to discuss early profits, leading Threadguy to abruptly mute the conversation.
Defending his position, Threadguy challenged accusers to find evidence of wrongdoing: “Go find anything that attaches this to me whatsoever because it doesn’t exist.”
Hayden Davis, a major token holder with $100 million in LIBRA, has attempted to distance himself from the controversy, stating that the LA Vape Cabal had no involvement in the project’s development or launch.
The situation escalated when President Milei attempted to minimize the impact, claiming only 5,000 people were involved in trading LIBRA, contradicting reports suggesting 44,000 participants. His subsequent actions, including retracting support while sharing trading tutorials, have raised questions about official involvement in the token’s promotion.
This incident follows a pattern of cryptocurrency projects involving political figures, though rarely with such direct involvement from a sitting head of state. The case has drawn particular attention due to Argentina’s ongoing economic challenges and its citizens’ increasing interest in cryptocurrency as a hedge against inflation.
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