Javier Milei-backed Libra token creators reportedly removed $99 million in liquidity – traders lost more than $250 million

Scandal troubles Libra Token saw entities associated with cryptocurrency creators withdraw about $99 million worth of investment liquidity, according to a media report Wednesday.

what happened: Blockchain Research Company Chain Analysis According to Reuters, eight cryptocurrency wallets allegedly tied to the Creator team removed funds from the token’s liquidity pool.

Chain analysis cannot confirm the owner’s identity, but points out that the wallets have obtained the token directly from the creator of Libra.

Benzinga Mail Chain Analysis for additional information about withdrawals. The story will be updated once it is responded.

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this Solana SOL/USDBased on the allegations of pumps and raincoats, meme-based coins have been facing a brick-built scam, a scam where creators raise funds for the coins, causing their value to soar, only disappear with the investment funds, leaving the project worthless.

Chain Analysis Company Nansen The report said 86% of traders lost $251 million on tokens, while the rest lost $180 million in profits.

Why it matters: President of Argentina Javier MileyHis promotional X post ignited the crazy situation, and he faced calls for a crushing defeat against him and criminal charges.

Milei said in his defense that he never advertised coins and that anyone who invested coins did so voluntarily.

Kelsier Ventures CEO Hayden DavisMiley’s Libra project consultant, admitted in an interview with Chain Detective coffee He has withdrawn about $100 million from Libra’s liquidity pool and has controlled funds. However, he said he had no plans to make profits from the funds in person.

Price action: At the time of writing, Libra’s exchange was $0.2333, down 15% in the past 24 hours, according to Benzinga Pro. The coin’s peak fell 77%.

Photo by Igor Faun on Shutterstock

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