Argentina’s President Under Fire for LIBRA Crypto Controversy and Historic Exchange Heist
Argentina’s crypto landscape has been shaken by President Milei’s endorsement of the LIBRA token, leading to legal repercussions and significant financial losses for investors. Concurrently, Bybit suffered the largest crypto theft on record, losing $1.5 billion in a breach attributed to North Korean hackers. These incidents illustrate ongoing vulnerabilities in the cryptocurrency market.
In a shocking turn of events, Argentine President Javier Milei faces severe backlash following his promotion of the LIBRA cryptocurrency. On February 14, he publicized the token on social media, asserting it would invigorate the economy by supporting small businesses. The rapid rise of LIBRA from near zero to nearly $5 before plummeting to under $1 left countless investors seeking recourse, resulting in over 100 fraud complaints lodged against him. Amid this turmoil, a judge has initiated a fraud investigation into the matter.
Crypto entrepreneur Hayden Davis, who reportedly made $100 million from LIBRA’s launch, admitted to engaging in controversial practices like “sniping,” where insiders purchase newly launched tokens at low prices, enabling them to sell at inflated rates. He revealed his involvement in LIBRA and another memecoin, MELANIA, during an interview, which raised questions about the ethics of such maneuvers in unregulated markets. Despite this revelation, Davis defended Milei, claiming he was misled by associates.
Unfortunately, the fallout from LIBRA has been devastating. A staggering 86% of traders incurred losses, totaling approximately $251 million, while a fortunate few managed to earn $180 million. In light of the scandal, Ben Chow, cofounder of the exchange facilitating LIBRA’s launch, submitted his resignation.
In another significant incident within the crypto landscape, Bybit, a Dubai-based exchange, fell victim to the largest recorded crypto heist. Hackers seized $1.5 billion from one of its cold wallets, with suspects pointing towards North Korean cybercriminals. Although the breach was substantial, Bybit’s CEO confirmed the company remains financially stable and can account for all client assets, assuring stakeholders of the exchange’s health.
In related news, Coinbase anticipates a positive development as the SEC may forego pursuing a lawsuit against them. Meanwhile, individuals affected by the FTX collapse could soon receive compensation. Additionally, Figure has secured SEC approval for the launch of an innovative interest-bearing stablecoin.
The recent developments in Argentina’s cryptocurrency situation have sparked intense criticism of President Milei as legal challenges mount in response to his promotion of LIBRA. Meanwhile, the industry grapples with serious security issues, highlighted by the staggering $1.5 billion heist at Bybit. Overall, these incidents underscore ongoing challenges within the crypto space, emphasizing the need for greater regulation and security measures.
Original Source: www.forbes.com
