Crypto Scandal: LIBRA and MELANIA Linked in Market Manipulation Probe

Investigations into the LIBRA meme coin have uncovered potential links to market manipulation activities, raising concerns about financial integrity in the cryptocurrency sector. Blockchain analysts have discovered connections between LIBRA and other projects, including MELANIA, suggesting coordinated insider activity and price manipulation.

Market makers allegedly controlled multiple tokens, following a pump-and-dump pattern that saw rapid price increases driven by insider trading and automated bots, followed by sudden sell-offs. This pattern resembles pump-and-dump schemes designed to exploit traders. The MELANIA token, launched just before Donald Trump’s second-term inauguration, briefly surged to a $2 billion market cap before crashing below $200 million. LIBRA followed a similar trajectory, surging after receiving public support from President Milei before collapsing following insider withdrawals.

KIP Protocol and Kelsier, entities linked to LIBRA, have denied wrongdoing. Julian Peh, KIP’s CEO, stated that all funds remain on-chain and accounted for, clarifying that KIP had no role in the token’s launch. Hayden Davis of Kelsier blamed President Milei and his team for investors’ losses, arguing that meme coin investments rely heavily on trust and endorsements. Despite the controversy, Davis plans to reinvest $100 million in LIBRA and burn all acquired tokens.

The LIBRA controversy highlights the risks associated with speculative meme coins, especially those tied to high-profile figures. While supporters insist the project remains viable, investigators continue to examine its connections to potential market manipulations. The unfolding saga surrounding LIBRA and its connections to other cryptocurrencies illustrates profound challenges within the investment landscape of meme coins. The final results of investigations could reshape regulatory expectations and investor confidence moving forward.