Libra Coin Scandal News: Who’s Responsible – Karina Milei or Ben Chow?

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Libra Coin Scandal News: Who's Responsible – Karina Milei or Ben Chow?
Table Of Contents
  1. The Libra Coin Scandal: A Crypto Storm Unleashed
  2. Ben Chow Resigns After LIBRA Controversy
  3. Political Allegations of Karina Milei to LIBRA Coin
  4. Who is Behind the Libra Coin Scandal?
  5. Jupiter's Independent Investigation into the LIBRA Token
  6. Effect on LIBRA Coin and Solana Prices
  7. The Road Ahead: What's Next for LIBRA and Solana?

The Libra Coin Scandal: A Crypto Storm Unleashed

The Libra Coin scandal rocked the Solana ecosystem, leading to the resignation0 of Meteora Co-Founder Ben Chow. The scandalous launch of the LIBRA memecoin has created concerns about insider trading, political interference, and significant investor losses.

Ben Chow Resigns After LIBRA Controversy

On 18 February, Jupiter founder Meow confirmed that Ben Chow stepped down from his position at Meteora because of “a lack of judgment and care” in decision-making. It is reported that certain members of the Meteora team might have participated in insider trading during Chow’s tenure. Crypto influencer Moty claimed that insiders profited financially through the $LIBRA token release. However, both Meow and Ben Chow have denied any malpractice, claiming that neither Chow nor Meteora used unethical measures. This scandal has been very devastating for Meteora’s reputation, leading to closer investigation into Ben Chow’s role in the scandal.

Political Allegations of Karina Milei to LIBRA Coin

The situation escalated when reports surfaced linking Karina Milei, sister of Argentina’s President Javier Milei, to the scandal. Hayden Davis, CEO of Kelsier Ventures, claimed he paid Karina to persuade President Milei to promote Libra Coin in Argentina. Davis is said to have told a cryptocurrency executive, “I send money to his sister, and he does what I tell him.” Both Karina Milei and Davis have rebutted these allegations, and there is no clear evidence. President Javier Milei also denied sponsoring the coin, claiming that he only “spread the word.” This political twist has resulted in lawsuits and even demands for the president’s impeachment, adding further complexity to the scandal.

Who is Behind the Libra Coin Scandal?

The collapse has left more than 13,000 investors with total losses of around $251 million. Figures from blockchain analytics company Nansen showed:

  • 86% of wallets that exchanged LIBRA for a profit or loss of over $1,000 resulted in losses.
  • An estimated 2,101 wallets collectively made a profit of $180 million, which indicates probable insider trading. In spite of such dire statistics, no concrete proof has implicated Karina Milei or Ben Chow in any kind of wrongdoing. Investigations are ongoing.

Jupiter’s Independent Investigation into the LIBRA Token

In reaction to the scandal, Jupiter conducted an independent probe of the $LIBRA token. The project initially engaged Fenwick & West to conduct the investigation but later reconsidered after criticism over the law firm’s previous association with FTX and Alameda Research. The probe will seek to establish if there was any fraudulent activity during the launch of Libra Coin, as the cryptocurrency community insists on total openness.

Effect on LIBRA Coin and Solana Prices

The Libra Coin scandal caused a massive decline in LIBRA and Solana prices.

LIBRA Price Decline:

  • Dropped 74%, from $1.0298 to $0.2180, with a 21.83% intraday fall.
  • Market cap fell to $55.85M, with an $8.29M trading volume.

Solana Price Decline:

  • Fell 11.63%, from $195.56 to $172.90.
  • Bounced back 5.36% intraday, rising to an $84.43B market cap and $3.64B trading volume.

The Road Ahead: What’s Next for LIBRA and Solana?

The LIBRA scandal has revealed deep-rooted problems in the crypto market, ranging from insider trading to political meddling. With Ben Chow resigning and probes in motion, just how much harm has been done is unclear. While LIBRA and Solana struggle to pick up the pieces, the crypto communityq is watching closely, demanding accountability, transparency, and more stringent regulations to avoid similar scandals happening again.

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