The withdrawal of $99 million value of cryptocurrency funds from the LIBRA token occurred on February 20, 2025 in Buenos Aires, Argentina. This development surprised political observers alongside investors due to its staggering amount.
The token gained initial approval from Argentine President Javier Milei prior to becoming an investigative target in a nationwide economic fiasco. All available information about this matter is presented here.
The Rise and Fall of LIBRA Token
On February 14, 2025 The LIBRA token entered the market when President Milei publicly backed its launch. A single social media post from him caused his token to rise from being almost worthless to surpass $5 within minutes.
When the president showed support for the investment many investors hurriedly entered the market because they perceived his backing as a sign of financial security.
Within a few days after its surge LIBRA token lost all its value in a swift decline. A steep price drop following the token launch made users believe a rug pull crypto scam had occurred since developers typically inflate token values then disappear with their profits.
What Happened to the $99 Million Withdrawn from LIBRA Token?
The blockchain tracking services Chainalysis and Nansen detected eight digital wallets claiming association with the LIBRA token development team drain about $99 million worth of stablecoin USDC and SOL cryptocurrency. The quick withdrawal of funds caused significant distress to investors who then started blaming the team for fraudulent activities.
Kelsier Ventures CEO Hayden Davis volunteered as the person responsible for overseeing the funds management process. Davis maintains that the token withdrawals were part of an investment approach which proved unsuccessful because of failure.
Through his statements Hayden Davis maintained no harmful motives while asserting that these transactions did not qualify as organized fraud.
Public Reaction to the LIBRA Token Scandal
The fallout has been swift. A total of 110 investors have presented their official complaints while indicating substantial financial losses. Online social platforms now contain overwhelming expressions of scandalous anger.
During these recent days Twitter users have made two hashtags especially popular with #LIBRAscandal and #MileiGate. Popularity on Instagram and Reddit presents content including political cartoons along with memes and investor accounts sharing stories about LIBRA token’s demise.
The former advocate of the token President Milei has chosen to remove himself from involvement with the project. The token’s operational structure remains unknown to him because he acted to eliminate all promotional social media content related to it.
Numerous people hold President Milei accountable for his faulty promotion of a dangerous investment that he never fully investigated.
Political Fallout and Future of the LIBRA Token
The political results of this situation are only starting to develop. Numerous opposition leaders seek President Milei’s removal from power by blaming his LIBRA token promotion for devastating numerous citizens financially. The federal investigators seek to validate whether the president took part in the controversial withdrawal activities.
Current circumstances present unclear prospects to individuals who invest. The process to find and recuperate the lost $99 million continues without any official recovery promise. The incident has caused financial experts to predict new restrictions governing cryptocurrency use in Argentina.
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What Happens Next?
The investigative process regarding the LIBRA token scandal continues with complete government and blockchain firm scrutiny. Will the funds be recovered? The cryptocurrency investment market holds any promise of reimbursement. What will be the permanent impacts President Milei faces due to the current situation?
The LIBRA token has established a warning about both cryptocurrency investment perils and political recommendation hazards in the market. All investors and political figures will move cautiously toward the future.
