Milei Meme Coin Scandal: $107M Loss
Milei Meme Coin Scandal: A $107 Million Loss
The cryptocurrency world is buzzing with the fallout from the LIBRA meme coin, a Solana-based token that experienced a dramatic collapse shortly after receiving a high-profile endorsement. At the center of the controversy is Argentine presidential candidate Javier Milei and his alleged connection to Hayden Davis, LIBRA's co-creator and CEO of Kelsier Ventures.
Key Developments
- Allegations of Influence Peddling: A CoinDesk report revealed text messages allegedly showing Davis boasting about influencing Milei through payments to his sister, Karina Elizabeth Milei. The messages reportedly include the statement, “I control that… I send $$ to his sister and he signs whatever I say and does what I want.”
- LIBRA's Meteoric Rise and Fall: Following Milei's February 14, 2025 social media endorsement, LIBRA reached a market capitalization of $4.5 billion. However, within hours, the token's value plummeted by over 90%, resulting in a liquidity drain of over $107 million, allegedly extracted by insiders.
- Davis's Admissions: Davis has admitted to profiting $100 million from the token's launch, expressing uncertainty about how to proceed after Milei's team reportedly abandoned the project.
- Potential US Jurisdiction: Given Davis's American citizenship and the involvement of US-based investors, US authorities are exploring their jurisdictional reach in the case.
- Past Allegations: Blockchain analysts have linked Davis to previous failed meme coin launches, including the MELANIA token.
- Official Silence: Both the Argentine government and Karina Elizabeth Milei have remained silent regarding the CoinDesk report and these serious allegations.
This incident highlights the significant risks involved in the meme coin market and underscores the need for robust due diligence before investing. It also raises critical questions about transparency and accountability within the cryptocurrency space.
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