Recent blockchain analysis reveals that approximately $99 million worth of cryptocurrency was withdrawn from the marketplace of the controversial $LIBRA token by eight digital wallets linked to the token’s creator. The token gained widespread attention after Argentine President Javier Milei mentioned it in a social media post before later deleting it and denying any involvement.
Milei’s Endorsement and Investigation
On Friday, President Javier Milei recommended the little-known crypto coin $LIBRA in a social media post. However, he quickly removed it and distanced himself from any connection to the token. Following his post, the value of $LIBRA skyrocketed to over $4.50 per token, only to collapse within hours. The dramatic price movement has raised concerns, prompting a federal judge to investigate both the token’s launch and Milei’s potential involvement. The president has since accused his political opponents of exploiting the situation.
Large Withdrawals Linked to Libra’s Creator
Blockchain researchers found that eight crypto wallets withdrew around $99 million worth of tokens from $LIBRA’s liquidity pool—a digital marketplace where users trade tokens. While the identities of the wallet owners remain unverified, researchers noted that these addresses received their tokens directly from the creator of $LIBRA. The transaction history suggests a strong connection between the wallets and the team behind the cryptocurrency.
Unclear Timeline of Withdrawals
The exact timing of the fund withdrawals has not been confirmed. The assets withdrawn from $LIBRA’s liquidity pool included the stablecoin USDC and another cryptocurrency known as SOL, or Solana. The value of these assets fluctuates based on market prices.
Meme Coins and Political Involvement
Meme coins—cryptocurrencies named after internet jokes or trends—are notorious for their volatility. Many experience rapid price surges before collapsing as early investors cash out. While meme coins have long been a part of the crypto industry, it is uncommon for them to be associated with political figures. Recently, former U.S. President Donald Trump and his wife launched their own crypto token, marking a rare instance of political involvement in the meme coin market.
Majority of Traders Lost Money
Another blockchain analytics firm reported that wallets removing tokens from Libra’s marketplace still hold around $87 million in value. However, as cryptocurrency prices fluctuate, the total value of holdings may change.
Between Sunday and Tuesday, approximately 70% of wallets trading $LIBRA suffered losses. The token was initially launched on a crypto exchange called Meteora, which has not yet responded to inquiries regarding the situation.
The controversy surrounding $LIBRA continues to raise questions about its legitimacy, Milei’s potential role, and the broader risks of investing in highly speculative cryptocurrencies. The ongoing investigation aims to uncover more details about the transactions and whether they were part of a coordinated effort to manipulate the market.
