Crypto scandal: Argentine President Javier Milei rakes in millions of dollars thanks to the $LIBRA memecoin scam

In recent days, there has been nothing but talk about the scandal involving the pro-crypto President of Argentina, Javier Milei, with the collapse of the memecoin $LIBRA. 

According to on-chain analysis, several insider wallets reportedly made a mountain of money by purchasing the coin before it was made public, only to sell it in the face of Milei’s supporters. 

The Argentine President thus loses all his credibility in front of the crypto world, revealing himself for what he truly is: a ruthless fraudster.

Let’s see all the details in the following article.

After $TRUMP, $MELANIA, and $CAR here is a new crypto scandal: Javier Milei accused of fraud with the memecoin $LIBRA

After $TRUMP and $MELANIA, here is a new crypto scandal: Javier Milei, President of Argentina, has been accused of fraud for promoting the memecoin $LIBRA and making a speculative profit from the operation. A few days ago, the well-known South American politician allegedly posted a tweet from his X profile inviting his supporters to purchase the meme coin $LIBRA, promising a libertarian revolution.

Source: https://x.com/AlephEdu/status/1891274934183158069

The cryptocurrency in question achieved significant success in the first hour of trading, reaching a market capitalization of over 4.4 billion dollars. In a short time, however, the value of $LIBRA literally collapsed, losing up to -97% as buyers realized they had fallen into a true scam. Within a few minutes, Milei deleted his tweet, pretending that nothing had ever happened. In reality, thanks to this less than transparent move, the President would have taken home a millionaire fortune, earning money on the backs of his own followers.

This scandal becomes even more macabre if we consider that the same wallet addresses that bought as insiders of $LIBRA are the same ones that participated in the launch of $MELANIA, the memecoin of the first Lady Melania Trump. According to what has been reported in this regard by the blockchain analysis company Bubblemaps, the wallets involved in this scam would have generated over 6 million dollars in profits on their own.

Increasing the controversy, rumors are circulating that some members of the decentralized exchange Jupiter were aware of the imminent launch of the token weeks before it hit the market. As stated by Jupiter itself, the launch of $LIBRA was a “segreto di Pulcinella nei circoli memecoin“, perfectly organized to extort money from unsuspecting crypto investors.

Source: https://dexscreener.com/solana/bzzmnvfm7t6zsgfelxzermrxfkanldo4fszvsisxcszz

The insider addresses on $LIBRA earn 107 million dollars on the backs of Milei’s followers

The insider addresses that have dealt with both $MELANIA and $LIBRA are just some of the wallets complicit in the scandal organized by President Milei. As shown in a tweet by “Lookonchain”, in total, all those who had early access to the news of the $LIBRA launch pocketed a whopping 107 million dollars. We are talking about an amount equivalent to 18,785 average monthly Argentine salaries, earned in just a few hours.

Other on-chain tracking companies had warned investors before $LIBRA started dumping, coloring the chart red. In particular, Bubblemaps had referred to the ponzi tokenomics (ponzinomics) of the memecoin, which featured 82% of the supply unlocked, available to be sold from the beginning.

This type of market manipulation is known as “pump and dump“, where the value of a token is artificially inflated by a small group of privileged investors who then sell it, leaving smaller investors with devalued assets. After the collapse of $LIBRA, however, the crypto community led a shitstorm against Milei, accusing him of being responsible for the fraud.

If the investigations confirm the fraud charges, Milei’s position as President of Argentina could become unsustainable. The trust of the citizens, already tested by the country’s economic difficulties, would be further compromised. Moreover, international financial authorities might start investigating his responsibility in this matter, opening potentially devastating legal scenarios. Now Milei is facing impeachment requests from his political opponents.

Source: https://x.com/lookonchain/status/1890619615883219455

The shocking statements of the memecoin project founder ignite the debate within the crypto community

The scandal of the memecoin Libra (LIBRA) also involved Hayden Davis, founder of the controversial cryptocurrency, who defended his initiative and the sponsorship of President Milei. According to what David stated in an interview with YouTube investigator Stephen Findeisen, known as “Coffeezilla”, $LIBRA was merely a failed social experiment, and not an actual scam.

Davis insisted that the complaints about manipulated trading on $LIBRA stem from the frustration of those who failed to get into the privileged “games” reserved for insiders. The same founder of the coin reportedly stated the following in a highly provocative tone.

“The complaints circulating on social media come from those who are not inside those exclusive groups. You would never hear them if they were in the circle of the privileged.”

The statements by Davis contribute to fueling the scandal, making the affair surreal and at times tragicomic. It is indeed absurd to think that the role of the insider is being so normalized, as if market manipulation and conflicts of interest have become common practice. Rather, such situations should be given more consideration by regulatory bodies, which should act more firmly to protect the integrity of the markets and safeguard investors from deceptive and harmful practices.
What David said has sparked a strong reaction in the cryptocurrency community. Many, in fact, have criticized his position, considering it an admission of disinterest towards transparency and ethics. Andre Cronje, co-founder of Sonic Labs, wrote on X:

“This statement outraged me. Its basic logic is that ‘cryptocurrency exists only to make money’. This shows that he has never worked on a serious crypto project.”