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Crypto Chaos: How Argentina’s President and LIBRA Token Collided

Wed Feb 19 2025

The LIBRA crypto scandal has sparked a political and financial crisis in Argentina, with President Javier Milei’s involvement raising serious questions about his judgment and the transparency of his actions. As investigations unfold, both Milei and co-founder Ben Chow face mounting scrutiny, highlighting the need for greater accountability in the cryptocurrency space.

🇦🇷 How Argentina's President Got Caught in the LIBRA Crypto Scam

A political and financial scandal is rocking Argentina as President Javier Milei faces accusations of promoting the controversial LIBRA token, a meme coin on Solana that collapsed spectacularly. Despite attempts to distance himself, evidence suggests Milei’s endorsement fueled the hype, leading to huge investor losses and a major political crisis.

🚨 The LIBRA Token Scandal

📅 February 14, 2025 – A post from Milei’s official account endorses LIBRA, sending its market cap soaring to $4.5 billion.
⚡ Initial speculation suggests his account was hacked, but Milei pins the post, confirming control.
📉 LIBRA crashes 95%, wiping out millions in investor funds.
💰 Insiders allegedly withdraw $107M before the collapse.
🔥 Milei later retweets a guide on buying LIBRA, making things even worse.

LIBRA’s creators claimed it would help Argentina’s economy, but the classic pump-and-dump pattern suggests otherwise. The Argentine markets took a hit, adding to the country’s financial turmoil.

🏛️ Milei’s Defense

The President denies wrongdoing, claiming he simply shared information and didn’t "endorse" LIBRA.

📢 Milei’s statement:
"I post about many topics, and LIBRA was no different. I tweeted about it just three minutes after launch because I was excited."

Critics argue that his tweets fueled the hype, triggering mass speculation and the inevitable crash.

⚖️ Legal & Political Fallout

The scandal escalates, with Argentine lawyers calling on the U.S. DOJ and FBI to investigate Milei’s ties to LIBRA’s creators.

💼 Key figures under scrutiny:

Hayden Davis (CEO of Kelsier, LIBRA’s market maker) – Claims Milei personally promoted LIBRA.
Ben Chow (Meteora co-founder) – Resigned amid insider trading allegations linked to LIBRA.

🇺🇸 The controversy spreads beyond Argentina, as LIBRA is linked to other shady projects, including a meme coin tied to Melania Trump and a Nigerian crypto deal.

📉 Devastating Investor Losses

Blockchain analytics firm Lookonchain reports massive losses:

💸 A trader lost $1.56M, reinvested $300K after Milei’s retweet, then lost another $200K.
🐋 A whale bought $3.25M worth of LIBRA, lost $2.65M, reinvested $531K, and lost $129K more.

Even the crypto community is divided, with Cardano founder Charles Hoskinson suggesting that Milei was misled by insiders.

🏛️ The Resignation of Ben Chow

🔹 Ben Chow (Meteora Protocol, Solana) steps down following allegations of involvement.
🔹 Jupiter & Meteora protocols hire Fenwick & West for an independent investigation.
🔹 Chow claims he only provided technical support and was not part of the scheme.

🔥 TL;DR

Milei allegedly promoted the LIBRA token, which then crashed 95%, wiping out millions in investor funds.
Legal investigations are underway, with Milei and LIBRA’s creators facing scrutiny.
Key figures, including Ben Chow, resigned amid insider trading allegations.
Massive investor losses, with some traders losing millions multiple times.
The scandal raises serious questions about transparency, accountability, and crypto regulation.