Argentina’s Stock Market Plunges Amid Crypto Scandal Involving President Javier Milei
Argentina’s financial landscape faced a significant blow as President Javier Milei found himself embroiled in a crypto scandal, resulting in a sharp decline in the country’s stock market over the weekend.
The LIBRA Memecoin Fiasco
- President Milei endorsed the LIBRA memecoin, causing the S&P Merval index to plummet by more than 5%.
- The LIBRA token, based on Solana, quickly lost 95% of its value following allegations of insider trading and fraud.
- Billions of dollars in investor funds were wiped out as the token collapsed after reaching a $4.5 billion market capitalization.
Insider Trading Revelations
On-chain analysis revealed startling details about the controversial LIBRA project and its creators’ involvement in questionable activities:
- The team behind LIBRA reportedly withdrew $107 million from the token, contributing to its rapid price collapse.
- Insider wallets were utilized to snipe tokens, resulting in a profit of $6.65 million for the project’s team.
Entanglement of Notable Figures
- Barstool Sports founder Dave Portnoy was caught in the LIBRA scandal, with reports suggesting his involvement through an insider wallet.
- Despite claiming to have invested late and incurring personal losses, Portnoy received compensation of $5 million in USDC from LIBRA’s developers.
Legal and Political Ramifications
The fallout from the LIBRA scandal has triggered legal and political repercussions that extend beyond the crypto realm:
- Critics have accused President Milei of damaging investor confidence and tarnishing Argentina’s global financial standing through his actions.
- Fraud charges have been filed against Milei and Kelsier Ventures, alleging their involvement in a fraudulent scheme.
Official Investigations and Government Scrutiny
- Argentine authorities have launched an official investigation into the LIBRA scandal to uncover potential misconduct by the project’s backers.
- Government officials are under scrutiny to determine if any of them played a role in promoting the token or benefited from its subsequent collapse.
