What started as an exciting meme coin launch tied to Argentine President Javier Milei quickly became a nightmare for investors. Within hours, LIBRA, the token he promoted, skyrocketed to a $4.5 billion market cap, only to crash soon after. Accusations of insider trading, market manipulation, and financial fraud have now taken center stage, raising serious concerns about the project’s legitimacy.
Shocking Insider Revelations
The controversy took a turn when former Argentine President Cristina Fernández de Kirchner accused Milei of promoting a scam that led to massive losses for retail investors while insiders walked away with millions. Although Milei denied any wrongdoing, blockchain analytics firm Arkham Intelligence uncovered clear evidence of insider trading.
According to Arkham, a wallet that sniped $1 million of TRUMP meme coin at launch later turned its profits into LIBRA, purchasing $5 million worth of tokens immediately after Milei promoted it. This wallet had a history of buying tokens early and selling them for huge profits, raising suspicions of planned market manipulation.
The $110 Million Insider Jackpot
The Kobeissi Letter in their series of posts revealed more information on the scandal. According to Kobeissi, the scandal deepened when Investigative YouTuber Coffeezilla exposed Hayden Davis, CEO of Kelsier Ventures, a key insider in the LIBRA launch, personally made over $110 million. In comparison, ordinary investors saw $4.4 billion wiped out. Davis admitted in an interview that he and his team used insider knowledge to manipulate liquidity, control prices, and maximize profits.
Further investigation revealed that Davis was also involved in Melania Trump’s meme coin. Blockchain data revealed direct links between LIBRA and MELANIA insiders. One wallet, DEfcyK, which played a major role in LIBRA, cashed out $87.4 million at the exact market peak, right before the crash.
However, KIP Protocol, a Web3 company involved in the scandal has denied such claims. KIP stated that it joined the LIBRA project only after the token’s launch. Its role was limited to managing the selection of funded tech projects and providing technical infrastructure for AI initiatives.
Selective Refunds and More Questions
A bizarre twist emerged when Barstool Sports’ Dave Portnoy revealed that Davis refunded him $5 million in losses. This led to speculation about preferential treatment for high-profile investors. Davis justified his actions, claiming that if he didn’t take advantage of the situation, someone else would, exposing the reckless greed behind the scandal.
Davis proposed three possible solutions for the $110 million he still holds: donating it to an Argentine nonprofit, refunding investors, or injecting it back into LIBRA to revive the token. However, investors fear this could be another manipulation attempt.
The Impact on the Memecoin Market
This scandal has shaken investor confidence in the memecoin sector. LIBRA’s collapse has highlighted the risks of investing in influencer-backed cryptocurrencies, especially when insiders have the power to manipulate price movements.
With Davis openly admitting to multiple securities law violations, legal action may be imminent. Whether or not authorities intervene, this case serves as a wake-up call for crypto investors: not all hype is worth chasing, and the memecoin space remains a high-risk, high-reward battlefield where the biggest winners are often those who control the game.
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