20-2-2025 – Blockchain analysts have revealed that approximately $99 million worth of cryptocurrency was withdrawn from the controversial $LIBRA token’s marketplace by eight digital wallets connected to the token’s creators.
The scandal erupted after Argentine President Javier Milei endorsed the obscure cryptocurrency on social media platform X last Friday, only to hastily delete the post and deny any association with the digital asset. The incident has now drawn the attention of federal investigators, who are scrutinising both the token’s launch and the president’s potential involvement.
According to leading blockchain intelligence firm Chainalysis, the suspicious withdrawals were executed through wallets that received tokens directly from $LIBRA’s creator. The extracted funds were converted into USDC stablecoin and Solana (SOL) cryptocurrency, though the precise timing of these transactions remains unclear.
“Our analysis strongly indicates these addresses are intimately linked to the Libra creator team, based on direct funding patterns from the token’s originator,” a Chainalysis representative explained.
Blockchain analytics firm Nansen provided additional insights, revealing that the wallets in question still maintain holdings valued at approximately $87 million. The firm also disclosed that a staggering 70% of $LIBRA traders suffered losses between Sunday and Tuesday.
The controversy has drawn particular attention to Hayden Davis, who identifies himself as a “launch advisor” for the token and CEO of Kelsier Ventures. In a public statement via his company’s social media account, Davis acknowledged controlling up to $100 million from the Libra marketplace, pledging to reinvest the funds into the token whilst denying personal profit motives.
In a subsequent interview with cryptocurrency commentator Stephen Findeisen, Davis rejected accusations of orchestrating a “rug pull” – a notorious crypto scam technique. “This isn’t a deliberate scam, but rather a strategy that went terribly awry,” Davis insisted.
The incident has garnered additional attention as it marks a rare intersection between meme tokens – typically associated with internet culture and jokes – and mainstream politics. This follows a trend that recently saw former US President Donald Trump and his wife venture into the cryptocurrency space with their own token launch.
The Meteora exchange, where $LIBRA was initially listed, has yet to comment on the developing situation.
