Libra crypto has been involved in a major controversy after a rug pull by the team. Investors are furious as the token dropped 95% in value just hours after the Argentine president promoted it. However, this is just the start of the controversy.
Recent investigations have uncovered that the same team behind Libra was also involved in launching the Melania token. The investigators allege a pattern of behavior in schemes that defrauded investors of millions.
On Monday, February 17, Blockchain analytics firm Bubblemaps published the results of a joint investigation with the scam detective Coffezilla.
The investigation revealed that the teams behind the controversial LIBRA token were also involved in launching the Official Melania Meme token.
The investigation revealed significant links between Libra and Melania tokens through on-chain activity and wallet transfers. Particularly, a wallet address labeled “0xcEA” was involved in both projects. It profited $2.4 million from Melania and $6 million from Libra.
Libra Insiders Reveals Involvement in Melania
These findings were confirmed by investigator Stephen Feinstein, also known as Coffeezilla. He published an interview with Hayden Davis, one of the key figures behind Libra, who controls $100 million of the token’s liquidity. In the interview, Davis admitted his team was a part of the Melania launch.
“I was part of it,” Davis told Coffezilla, though he claimed the team did not make any money from the launch. Like Libra, the Melania token lost 90% of its value from its all-time high of $13.73 on the launch date.
Davis denies the projects were traditional rug pulls, but reveals that insiders have prior knowledge of the token. He also blamed high-frequency traders, known as snipers, who accumulated millions of tokens just after it launched. This had the effect of pumping its price to an astounding $4.5 billion.
According to Davis, snipers then dumped the tokens on the market, causing the price to collapse. With Libra, he also blames Javier Milei, who publicly promoted the token only to backtrack after the token collapsed.
Davis also revealed that the promotion was coordinated with Milei beforehand. Now, the token’s crash could cost Milei his career. Namely, Argentine lawyers charged Milei with fraud after the Libra crash, and the opposition is threatening to impeach him.
READ MORE: Argentina’s President Endorses $LIBRA Memecoin — Back Off After 95% Crash
