Argentina’s President Denies Crypto Link as $99M Withdrawn Amid Scandal

BUENOS AIRES, Argentina — Around $99 million worth of cryptocurrency was withdrawn from the marketplace of the $LIBRA token on February 19 by eight digital wallets linked to its creator, according to blockchain researchers. The scandal escalated following Argentinian President Javier Milei‘s public promotion of the little-known crypto coin, which he later denied having any connection to.

Blockchain research firm Chainalysis revealed that these wallets had withdrawn funds from the $LIBRA token’s liquidity pool, drawing scrutiny due to their association with the token’s creator. “The on-chain behavior suggests that these addresses are closely related to the Libra creator team,” Chainalysis stated in a report.

The controversy began when Milei publicized $LIBRA in a post on X, which he subsequently deleted. The coin’s value initially surged above $4.50 before experiencing a drastic decline. In light of the situation, critics have called for Milf41 to face impeachment proceedings and potential criminal charges.

Despite the backlash, Milei asserted that he had no involvement with the coin and blamed his political rivals for exploiting the situation. He emphasized that individuals who invested in the cryptocurrency did so voluntarily.

Nansen, another blockchain analytics company, indicated that approximately 70% of wallets trading $LIBRA experienced losses, totaling around $251 million. They reported that the remaining investors earned $180 million in profits.

According to Chainalysis, the wallets withdrawn from Libra’s liquidity pool contained USDC and SOL, two cryptocurrency tokens. “The dollar value of these funds varies as token prices fluctuate,” Chainalysis noted. As of the latest reports, the remaining value in wallets tied to the LIBRA launch is estimated at $87 million.

Hayden Davis, a self-declared launch advisor for $LIBRA and CEO of Kelsier Ventures, admitted to having control over approximately $100 million withdrawn from the liquidity pool. Davis claimed he would reinvest the funds back into the token but noted he would not benefit personally from them.

In a conversation with crypto YouTuber Stephen Findeisen, known as Coffeezilla, Davis described the situation as a failed plan rather than a scam, asserting, “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.”

President Milei’s critics maintain the president’s initial endorsement of $LIBRA contributed to the “pump-and-dump” accusations levied against the project. The token was launched on the crypto exchange Meteora, which has yet to comment on the ongoing developments.