Allegations of Insider Trading Surrounding LIBRA Cryptocurrency
After a turbulent launch, the LIBRA cryptocurrency, endorsed by Argentina’s President Javier Milei, faced allegations of insider trading. Hayden Davis, one of the co-creators, revealed that insiders had early access to purchase the token before it hit the market.
The Rise and Fall of LIBRA
- LIBRA aimed to stimulate economic growth in Argentina by supporting small businesses and startups.
- Developed by Hayden Davis and Kelsier Ventures, with technical support from KIP Protocol, it ran on the Solana blockchain.
- President Milei’s endorsement led to a rapid rise in value, reaching a market cap of over $4 billion.
- However, the value plummeted shortly after, with insiders cashing out over $87 million within hours post-launch.
Insider Trading Revelation
During an interview, Hayden Davis disclosed that individuals at a private dinner in Washington, D.C., were allowed to purchase 500 million tokens at a discounted rate before the public launch.
- Davis criticized the crypto industry for favoring those with connections, creating unfair advantages for certain individuals.
- He also admitted similar tactics were used in another project called MELANIA, highlighting a pattern of insider trading in the market.
President Milei’s Impeachment Threat
The LIBRA scandal has put President Milei under fire, with allegations of fraud and calls for impeachment.
- Critics accuse Milei of promoting a speculative asset that led to investor losses, resembling a classic “rug pull” scenario.
- Legal experts have filed fraud complaints, prompting an official investigation by Argentina’s Anti-Corruption Office.
- The controversy has damaged Milei’s reputation and sparked political turmoil, with calls for his impeachment from various political figures.
