Buenos Aires: Blockchain researchers have revealed that approximately $99 million worth of cryptocurrency was withdrawn from the marketplace of the controversial $LIBRA token, a digital coin at the center of an emerging scandal in Argentina. The withdrawals were made by eight crypto wallets linked to the token’s creator, according to an analysis by blockchain research firm Chainalysis.
Milei’s Endorsement and Legal Scrutiny
Argentinian President Javier Milei unexpectedly endorsed the obscure $LIBRA token in a post on X late Friday. However, he swiftly deleted the post and later denied any connection to the cryptocurrency. Despite this, the token’s price surged above $4.50 shortly after Milei’s post before plummeting within hours.
A federal judge has since launched an investigation into the coin’s launch and Milei’s potential involvement, amid growing concerns over market manipulation. Milei, for his part, has accused political opponents of exploiting the situation.
Blockchain Analysis: Suspicious Withdrawals
According to Chainalysis, the eight wallets responsible for withdrawing $99 million worth of tokens did so from $LIBRA’s liquidity pool—a decentralized marketplace where traders exchange assets.
While Chainalysis was unable to confirm the identities behind these wallets, the firm pointed to blockchain data indicating they were directly funded by the token’s creator.
“The on-chain behavior suggests that these addresses are closely related to the Libra creator team based on the fact that those addresses were funded directly from the Libra token creator,” Chainalysis told Reuters.
The research firm did not specify when the withdrawals occurred.
Meme Coins and Political Controversy
Meme coins—cryptocurrencies inspired by internet trends or jokes—are notorious for their volatile price swings, often experiencing sharp rises before crashing when early investors cash out. While meme coins are common in the crypto space, political figures rarely become entangled with them.
However, last month, former U.S. President Donald Trump and his wife Melania launched their own cryptocurrency, making this type of political involvement increasingly notable.
The withdrawn $LIBRA funds were converted into USDC, a stablecoin pegged to the U.S. dollar, and SOL, the native cryptocurrency of the Solana blockchain. As the value of these tokens fluctuates, the exact dollar amount of the withdrawn assets may vary.
Another blockchain analytics firm, Nansen, reported on Wednesday that the wallets responsible for removing tokens from $LIBRA’s marketplace still hold a combined value of approximately $87 million.
“It is fair to say that there is still a lot of money in the hands of those related to the Libra launch,” Nansen stated.
Crypto Exchange and Market Fallout
The $LIBRA token was launched on a cryptocurrency exchange called Meteora. However, Meteora has yet to respond to inquiries regarding the situation.
Between Sunday and Tuesday, Nansen reported that 70% of wallets trading $LIBRA incurred losses, underscoring the financial toll on investors caught in the token’s dramatic price swings.
A ‘Plan Gone Wrong’?
Hayden Davis, who was previously listed as the CEO of crypto firm Kelsier Ventures on his now-unavailable LinkedIn profile, has come forward as a key figure in the token’s launch.
On Sunday, Davis described himself as a “launch advisor” for $LIBRA in a statement posted on Kelsier Ventures’ X account. He claimed control over up to $100 million in cryptocurrency from the Libra marketplace but did not clarify how or why he acquired these funds.
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“I want to make it unequivocally clear that I have not, nor will I, take any of these funds for my personal benefit,” Davis stated. He added that he intends to reinvest the money back into the token.
Speaking to crypto YouTuber Stephen Findeisen—better known as “Coffeezilla”—Davis denied that $LIBRA was a classic “rug pull” scam, where developers abandon a project after driving up its value and profiting from withdrawals.
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“It’s not a rug. It’s a plan gone miserably wrong with $100 million sitting in an account that I’m the custodian of,” Davis said during the interview, which Reuters confirmed with Findeisen.
International news agency Reuters reported that it attempted to contact Davis for further comment, but he remained unreachable. His spokesperson also did not respond to inquiries.
