Argentina's president retracts memecoin endorsement after insider cash-out triggers 95% crash

Argentina's president retracted a memecoin endorsement after a 95% crash caused by insider cash-out.

: Argentine President Javier Milei withdrew his support for the memecoin $LIBRA after it plummeted by 95% following suspicious cash-outs. The coin's market cap initially soared to $4.5 billion but collapsed to $232 million as Lookonchain flagged $107 million withdrawals by inside wallets. Facing backlash, Milei distanced himself from the coin, and legal charges alleging fraud were filed against him. Both the exchange Jupiter and KIP Protocol denied involvement in any fraudulent activities.

Argentine President Javier Milei recently endorsed the memecoin $LIBRA, which momentarily pushed its market value to an impressive $4.5 billion. However, this high was short-lived as the asset dramatically nosedived by 95% to $232 million after Lookonchain linked $107 million withdrawals to insider wallets.

Accusations of an insider 'rug pull' arose, particularly after Bubblemaps had warned of the concentration of $LIBRA ownership. Subsequently, President Milei withdrew his backing, claiming ignorance of the project’s inner workings, and publicly distanced himself from it.

Jupiter, the exchange associating with $LIBRA, denied illicit involvement, while KIP Protocol's Julian Peh stated their limited role in the project. Meanwhile, legal troubles brew for Milei, with Argentine lawyers alleging his participation in a fraud scheme as the matter awaits judicial review.

CryptocurrencyLIBRAFraud Charges