Crypto worth $99 million withdrawn from Milei-backed Libra token, say researchers
Around $99 million worth of cryptocurrency was withdrawn from the marketplace of a coin at the centre of a scandal in Argentina by eight digital wallets linked to the crypto token's creator, blockchain researchers said.
Argentinian President Javier Milei recommended the little-known crypto coin $LIBRA late on Friday in a post on X, but later deleted the post and denied having any link to the cryptocurrency.
A federal judge is investigating the token's launch and Milei's involvement in it, after the coin, promoted by Milei on Friday, soon shot up above $4.50 apiece then plummeted just hours later.
Milei has accused his rivals of trying to take advantage of the situation.
According to blockchain researchers Chainalysis, eight crypto wallets withdrew roughly $99 million worth of tokens from the $LIBRA token's so-called liquidity pool - a kind of crypto marketplace where people can trade.
Chainalysis could not confirm the identities of the owners of the wallets that withdrew the crypto, but said they were wallets that received tokens directly from the creator of $LIBRA.
"The on-chain behavior suggests that these addresses are closely related to the Libra creator team based on the fact that those addresses were funded directly from the Libra token creator," Chainalysis told Reuters.
Chainalysis did not comment on when exactly the funds were withdrawn.
Meme coins are crypto tokens that feature branding or names referencing memes or internet trends or jokes. They often collapse after quickly soaring in value as earlier traders take profits. While the coins have long been a fixture in the crypto industry, it is rare for them to involve politicians. In a surprise move, U.S. President Donald Trump and his wife launched their own last month.
The tokens withdrawn from Libra's liquidity pool were the stablecoin USDC and another cryptocurrency called SOL, or Solana, Chainalysis said, adding that the dollar value of these funds varies as token prices fluctuate.
Another blockchain analytics firm, Nansen, told Reuters on Wednesday that wallets which removed tokens from Libra's marketplace "still hold a combined value of about $87 million".
Nansen said "it is fair to say that there is still a lot of money in the hands of those related to the Libra launch."
The value of holdings can change in dollar terms as the price of the cryptocurrencies they are stored in changes.
The token was launched on a crypto exchange called Meteora. The exchange could not immediately be reached for comment.
From Sunday to Tuesday, 70% of wallets trading $LIBRA lost money, Nansen said.
PLAN GONE WRONG
Hayden Davis, whose now-unavailable LinkedIn page said he is CEO of a crypto company called Kelsier Ventures, described himself in a statement on the company's X account on Sunday as a "launch advisor" for the token.
Davis said in the statement that he had as much as $100 million of crypto from the Libra marketplace under his control, without describing how or why he acquired the funds. He said he intends to "reinvest" this money back into the token.
"I was to make it unequivocally clear that I have not, nor will I, take any of these funds for my personal benefit," Davis said in the written statement on X.
In an interview published on Monday with crypto YouTuber Stephen Findeisen, known as "Coffeezilla", Davis said the token was not a so-called rug-pull, a scam in which a coin's backers lure investors, sending its value soaring, then quickly withdraw their funds, leaving investors with worthless tokens. Davis said he had been trying to stop the token falling further.
"It's not a rug. It's a plan gone miserably wrong with $100 million sitting in an account that I'm the custodian of," he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
an hour ago
- Gulf Today
Tens of thousands join pro-Palestinian marches in London and Berlin
Tens of thousands of pro-Palestinian protesters marched in London and Berlin on Saturday calling for an end to the war in Gaza, amid concerns that the Iran-Israel conflict could spark wider regional devastation. Protesters in the British capital waved Palestinian flags, donned keffiyeh scarves and carried signs including "Stop arming Israel" and "No war on Iran" as they marched in the sweltering heat. "It's important to remember that people are suffering in Gaza. I fear all the focus will be on Iran now," said 34-year-old Harry Baker, attending his third pro-Palestinian protest. "I don't have great love for the Iranian regime, but we are now in a dangerous situation," he added. There have been monthly protests in the British capital since the start of the 20-month-long war between Israel and Hamas, which has ravaged Gaza. Demonstrators protest against conditions in Gaza and to impose sanctions against Israel and against arms shipments in front of the Reichstag building. Reuters Saturday's march comes amid heightened global tensions as the United States mulls joining Israel's strikes against Iran. Cries of "Palestine will be free" rang out as protesters carried signs saying "Hands off Gaza" or "Stop starving Gaza." Gaza is suffering from famine-like conditions according to UN agencies in the region following an Israeli aid blockade. Gaza's civil defence agency has reported that hundreds have been killed by Israeli forces while trying to reach the US- and Israeli-backed aid distribution sites. Protesters wave Palestinian and Iranian flags as they take part in a march through central London on Saturday. AFP "People need to keep their eyes on Gaza. That's where the genocide is happening," said 60-year-old protester Nicky Marcus. "I feel frustrated, angry because of what's happening in Gaza," said 31-year-old data analyst Jose Diaz. "It's in everyone's eyes. It's still on after so many months," Diaz added. 'Scared' The overall death toll in Gaza since the war broke out has reached at least 55,637 people, according to the health ministry. A 31-year-old Iranian student who did not want to share her name, told AFP she had family in Iran and was "scared". "I'm worried about my country. I know the regime is not good but it's still my country. I'm scared," she said. Tehran said over 400 people have been killed in Iran since Israel launched strikes last week claiming its arch-foe was close to acquiring a nuclear weapon, which Iran denies. Some 25 people have been killed in Israel, according to official figures. In Berlin, more than 10,000 people gathered in the centre of the city in support of Gaza, according to police figures. "You can't sit on the sofa and be silent. Now is the time when we all need to speak up," said protestor Gundula, who did not want to give her second name. "Germany finances, Israel bombs" was among the chants from the crowd, which gathered mid-afternoon close to the German parliament. For Marwan Radwan, the point of the protest was to bring attention to the "genocide currently taking place" and the "dirty work" being done by the German government. Agence France-Presse
Gulf Today
an hour ago
- Gulf Today
Afghanistan turns to Russia for some food supplies amid Iran-Israel war
Afghanistan is in discussions with Russia to import certain foodstuffs as the conflict between Israel and Iran, one of its largest trading partners, risked cutting off supplies, its agriculture minister told Reuters. As relations between Russia and the Taliban government have been improving, an Afghan delegation is visiting Russia's main economic conference in St. Petersburg this week, meeting Russian agriculture officials. "Afghanistan is definitely aiming for self-sufficiency in its agricultural products. However, we still rely on some food items that come from Iran, and if problems arise there, it will undoubtedly have its effects," Ataullah Omari said on the sidelines of the conference. Iran supplies Afghanistan with some dairy products, among other commodities, and there is widespread concern the week-old war between Israel and Iran could disrupt trade flows Russia - the world's largest wheat exporter - and Kazakhstan are the main suppliers of wheat and flour to Afghanistan. Russia is also supplying sugar and vegetable oil. Omari said that the country is now seeking wheat rather than flour from Russia. Afghanistan, the top buyer of Russian flour in 2024, increased its own wheat production by 10% last year to 4.83 million metric tons. The country's total wheat consumption is estimated at 6.8 million metric tons a year. "For the past four years, since the withdrawal of the Americans, we have been making efforts to provide our essential food supplies ourselves. The remaining amount, including flour and wheat, is supplied annually by Russia," Omari said. "We have requested that Russia send us wheat instead of flour. Additionally, the import of other products that come from Russia to our country annually is progressing well," he added. In April, Russia lifted its ban on the Taliban, which it had designated as a terrorist organisation for more than two decades, paving the way for Moscow to normalise ties with Afghanistan's leadership. Since 2022, Afghanistan has imported gas, oil, and wheat from Russia, marking the first major economic deal after the Taliban returned to power, facing international isolation following 20 years of war against US-led forces. Omari expressed concern about Afghan refugees living in Iran who could become victims of Israel's attacks. The UN Refugee Agency (UNHCR) estimates that nearly 4.5 million Afghan nationals reside in Iran. "Any kind of damage that occurs there is absolutely unsatisfactory for our nation and our people, especially for many of our refugees who live there and are our brothers," he said. Reuters
Middle East Eye
2 hours ago
- Middle East Eye
Senior Iranian official: European proposals in Geneva unrealistic
A senior Iranian official said on Saturday that proposals put forward by European powers at talks in Geneva about his country's nuclear programme were "unrealistic", suggesting that if they stuck to them it would be difficult to reach an accord. There were few signs of progress on Friday after the foreign ministers of Britain, France and Germany, known as the E3, plus the EU met their Iranian counterpart in a bid to prevent the conflict between Israel and Iran from escalating. "The discussions and proposals made by the Europeans in Geneva were unrealistic. Insisting on these positions will not bring Iran and Europe closer to an agreement," the senior official told Reuters, while speaking on condition of anonymity. "In any case, Iran will review the European proposals in Tehran and present its responses in the next meeting," the official said. Both sides signalled on Friday their readiness to keep talking, although no new date was set. European diplomats said Friday's talks had been aimed at testing Tehran's willingness to negotiate a new nuclear deal despite there being no obvious prospect of Israel halting its attacks soon.
