LIBRA Memecoin: A Wild Ride and a Big Scandal
In the world of cryptocurrency, there’s been a huge scandal about a coin called LIBRA. This coin became super popular, then crashed really fast, leaving lots of people with big losses. Argentina’s President, Javier Milei, got involved, and now, a prosecutor wants to freeze assets linked to this fraud.
The LIBRA Coin: Up, Up, and Away… Then Crash!
The LIBRA coin was launched on February 14, 2025, as part of a project to help Argentine entrepreneurs. But its story didn’t have a happy ending. After President Milei talked about it on social media, the coin’s value went up super fast, reaching a market value of $4.5 billion. But then, something terrible happened.
Some people who were part of the project started selling their coins really fast. Within just a few hours, the coin’s value dropped by over 96%! This is called a “rug pull,” where the people who created the coin suddenly sell all their shares, leaving investors with worthless coins.
Investigators found out that the scammers used many different wallets to buy the coins early. Then, when the price went up, they sold them for a massive profit. This is called “sniping,” and it’s a sneaky way to make money before other people can react.
Who’s Behind This Scandal?
There are several people involved in this scandal. Hayden Davis, the CEO of Kelsier Ventures, admitted to manipulating the coin’s initial sale for profit. Arunkumar Sugadevan is also linked to this scam, and he’s been involved in other fraudulent projects too.
President Milei’s involvement is a big deal. When he endorsed LIBRA, many people thought it was a government-backed project. This made the coin’s value go up even more. But later, Milei said he had nothing to do with the project. Some people think he misled investors, and now, opposition lawmakers have filed criminal fraud charges against him.
What’s Happening Now?
The prosecutor’s move to freeze assets is a big step towards holding the people responsible accountable. Over 100 criminal complaints have been filed against Milei. International law firms are also helping foreign investors who lost money by organizing class action lawsuits.
The asset freeze is like a big lock on the scammers’ money. It’s a crucial moment in the investigation, as authorities try to figure out how all the money was moved around and who’s connected to the scam.
Why This Matters
The LIBRA memecoin scandal is a big warning about the risks in the cryptocurrency market. As the investigation continues, it’s clear that we need stricter rules and more transparency to protect people from these kinds of scams. Freezing assets is a step towards justice, but we also need to make sure that people are held accountable in the crypto world.