Propose an edit: LIBRA

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Title Category One sentence summary Infobox, one "key: value" per line Article body, markdown, use [[wiki links]] and end with a ## References section

LIBRA is a token on the [[Solana]] blockchain launched on February 14, 2025, and promoted within minutes by Argentine President Javier Milei on X as a private initiative to fund small businesses. Its collapse hours later, in what investigators and plaintiffs have characterized as an insider extraction scheme, became known as the cryptogate or $Libra scandal, the largest political meme coin scandal on record.

## Origin

The token was created by people associated with Kelsier Ventures, led by Hayden Davis, together with KIP Protocol, and was presented under the banner "Viva La Libertad Project." Milei's post, later deleted, shared the contract details and framed the token as supporting Argentine economic growth. Davis had previously said he worked on the [[Melania]] launch, tying LIBRA to the January 2025 political coin wave.

## Collapse

LIBRA's market value spiked to about 4.5 billion dollars on the strength of the presidential post, then crashed within hours. Reporting and court filings state that insider wallets withdrew between 80 and 100 million dollars from the token's liquidity less than an hour after creation, with researchers estimating investor losses around 251 million dollars; an Argentine parliamentary commission later counted 114,410 wallets with losses. Coverage described the structure as a rug pull, with a small number of wallets posting multimillion dollar gains. CoinDesk reported text messages in which Davis bragged that he could send money to Milei's sister, Karina Milei, and that the president would "do what I want"; Davis denied wrongdoing.

## Investigations

The scandal produced a federal criminal investigation in Argentina, impeachment calls, and a task force review of the president's conduct; Milei denied promoting an investment and said he merely shared information, comparing losing traders to casino gamblers. A US class action in New York, led by Burwick Law, targeted Davis, his brothers, Kelsier Ventures, and associated parties, alleging more than 100 million dollars was siphoned from one sided liquidity pools; a federal court temporarily froze about 57.6 million dollars in USDC tied to the defendants in May 2025, and Judge Jennifer Rochon later unfroze the funds, citing the defendants' cooperation. One year on, Mercopress reported in February 2026 that proceedings in both countries remained active without final resolution, with an Argentine parliamentary commission concluding the presidential promotion had been pivotal to the token's reach and had been conducted using the presidential office. All culpability claims remain allegations before the courts.

## Cultural impact

LIBRA ended the political coin era that [[Official Trump]] began. In [[the trenches]] it is the canonical "insider supply" horror story: sniper wallets, presidential distribution, and a chart that went to zero before most buyers could read the ticker. It destroyed remaining confidence in celebrity launches, made "Kelsier" shorthand for coordinated extraction, and turned meme coin forensics by onchain investigators into mainstream news in Argentina.

## References

- https://en.wikipedia.org/wiki/$Libra_cryptocurrency_scandal
- https://www.dlnews.com/articles/markets/how-did-milei-libra-memecoin-crash/
- https://buenosairesherald.com/politics/libra-the-timeline-of-a-crypto-scandal-thats-rocking-the-milei-government
- https://www.coindesk.com/business/2025/02/18/libra-token-s-co-creator-bragged-of-sending-money-to-argentine-president-milei-s-sister
- https://en.mercopress.com/2026/02/14/libra-token-scandal-what-is-known-one-year-after-milei-s-post
- https://blockchain.bakermckenzie.com/2025/02/19/the-controversy-surrounding-argentine-president-javier-milei-and-the-libra-token/
- https://www.tradingview.com/news/cointelegraph:e074c1e61094b:0-us-court-freezes-57m-usdc-allegedly-linked-to-libra-scandal/
- https://finance.yahoo.com/news/libra-promoters-regain-access-57-191944299.html

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