Libra Crypto Plunges: $99M Withdrawal Amid Political Storm

Libra crypto plunges as $99 million withdrawn

The value of the Libra cryptocurrency has taken a significant hit following the withdrawal of approximately $99 million from its liquidity pool. The controversy surrounding Argentinian President Javier Milei has added fuel to the fire, with the president initially promoting the token before distancing himself amid a federal investigation into its launch and his potential involvement.

Blockchain researchers have identified eight digital wallets as the sources behind the withdrawal, with funds being directly transferred from the token's creator. The wallets, which remain unidentified, withdrew the funds in the form of USDC, a stablecoin, and Solana (SOL) cryptocurrency. Despite the withdrawal, the wallets still hold about $87 million worth of cryptocurrencies.

The market has seen significant activity around the Libra token, with 70% of wallets trading it between Sunday and Tuesday incurring losses. The token was launched on the Meteora crypto exchange, which has not provided comments on the situation.

Hayden Davis, CEO of Kelsier Ventures, claimed to have control over nearly $100 million of crypto from the Libra marketplace. In a statement, he expressed his intention to reinvest the funds back into the token and denied any plans for personal gain. Davis also addressed allegations of a "rug-pull" scam in an interview, stating that the situation was a failed plan rather than an intentional fraud.

The situation with the Libra token is particularly notable due to the involvement of a political figure, a rarity in the cryptocurrency industry. The investigation into the token's launch and the president's involvement continues, with the market responding to these unfolding events.