How Did the LIBRA Token Scandal Erupt?

Known for his enthusiasm for cryptocurrencies, Argentine President Javier Milei publicly announced his support for a new digital asset called Libra (LIBRA) a few months ago. His endorsement was well received by investors, and the token attracted massive attention upon launch.

However, the excitement quickly turned into chaos. Blockchain analysis revealed that eight insider wallets collectively withdrew $107 million in liquidity, leaving thousands of investors at a loss. Following this event, LIBRA’s market capitalization collapsed from $4 billion to near zero. The Argentine stock exchange also reacted sharply, with indices dropping by over 6%.

Adding fuel to the fire, rumors emerged that the rug pull had been known in crypto circles weeks in advance. Jupiter Exchange claimed on social media that the LIBRA token launch was an “open secret in memecoin communities,” further intensifying insider trading allegations.

From Market Crash to Investigation Shutdown: A Surprising Turn

In response to the growing public backlash, the Argentine government established a special investigative unit to probe the organization behind LIBRA and the potential misuse of insider information. However, on May 20, 2025, reports confirmed that President Javier Milei has officially dissolved the unit.

The decision, made through a presidential decree, sparked a new wave of distrust among both local and international investors. As the crypto market once again debates transparency and accountability, many analysts interpret Milei’s move as an attempt to suppress the scandal rather than resolve it.

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