{"investigation":{"slug":"libra-token","entity_name":"LIBRA Token","trust_score":2,"severity_base":null,"score_modifier":0,"confidence":0.95,"status":"published","content_type":"investigation","summary":"LIBRA ($LIBRA) is a Solana-based memecoin launched on February 14, 2025 by Kelsier Ventures as part of the 'Viva La Libertad' project, and publicly endorsed by Argentine President Javier Milei minutes after its creation. Within roughly one hour, the token's market cap peaked near $4.6 billion before crashing approximately 89% as insider wallets linked to the founding team extracted an estimated $87–107 million in liquidity, leaving an estimated 44,000–114,000 retail investors with severe losses. The incident triggered over 112 criminal complaints in Argentina, a federal fraud investigation, congressional proceedings, international asset freezes, and an Interpol Red Notice request against key operator Hayden Davis.","sections":[{"content":"The $LIBRA token was created on February 14, 2025, at approximately 6:58 PM Argentina time on the Solana blockchain by Delaware-registered Kelsier Ventures, whose CEO is Hayden Mark Davis. The project was marketed under the name 'Viva La Libertad' (Long Live Freedom) and was publicly described as a vehicle for funding Argentine small businesses and startups. Three minutes after token creation, at 7:01 PM local time, Argentine President Javier Milei posted an endorsement on X (formerly Twitter), Instagram, and Facebook to his approximately 3.8 million followers, describing it as a promising opportunity for investors. The token was made available through Meteora, a Solana-based decentralized exchange platform that had previously facilitated launches for the TRUMP and MELANIA meme coins. KIP Protocol, led by CEO Julian Peh, was also identified as an involved party in the launch structure. The founding team held approximately 70% of the total token supply prior to launch, a distribution that positioned insiders to profit disproportionately from any price surge.","heading":"Token Background and Launch Mechanics","sources":[{"url":"https://en.wikipedia.org/wiki/$Libra_cryptocurrency_scandal","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://decrypt.co/306594/who-launched-president-milei-libra-solana-meme-coin","name":"decrypt.co","type":"other","credibility":3},{"url":"https://decrypt.co/306134/did-argentina-president-javier-milei-launch-solana-meme-coin","name":"decrypt.co","type":"other","credibility":3},{"url":"https://cointelegraph.com/news/kip-protocol-reveals-involvement-javier-milei-endorsed-libra","name":"cointelegraph.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Following Milei's endorsement, $LIBRA experienced an extreme price surge, rising from approximately $0.000001 to a peak of $5.20 within 40 minutes, pushing its market capitalization to approximately $4.5–4.6 billion. On-chain analysis by TRM Labs found that approximately 20 minutes before Milei's tweet, one address received one million $LIBRA tokens and added them to the Meteora liquidity pool — consistent with pre-positioned insider activity. According to Chainalysis, eight wallets linked to the token's creator team subsequently withdrew the funds. TRM Labs reported that approximately $7.8 million in SOL was withdrawn directly from the Meteora liquidity pool by addresses linked to the development team, with those funds then circulating through two intermediate wallets before reaching consolidation addresses that held approximately $90 million in combined Solana and USDC at the time of analysis. Within three hours of Milei's post, the token's value collapsed by approximately 89%, falling to roughly $0.99. The market cap fell from approximately $4.6 billion to $162 million by February 15, 2025. The event has been widely characterized as a 'rug pull,' a scheme in which developers liquidate pre-held token positions at peak prices, crashing the value for retail participants.","heading":"Price Surge and Alleged Rug Pull","sources":[{"url":"https://www.trmlabs.com/resources/blog/the-libra-affair-tracking-the-memecoin-that-launched-a-scandal-in-argentina","name":"trmlabs.com","type":"other","credibility":3},{"url":"https://cryptonews.com/news/javier-milei-linked-libra-token-99m-withdrawals-chainalysis/","name":"cryptonews.com","type":"other","credibility":3},{"url":"https://en.wikipedia.org/wiki/$Libra_cryptocurrency_scandal","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://coinpedia.org/research-report/the-libra-memecoin-scam-inside-the-presidential-pump-and-dump-that-led-to-a-4-billion-crash/","name":"coinpedia.org","type":"other","credibility":3}],"severity":"medium"},{"content":"Estimates of retail investor losses vary across sources and methodology. Nine founding accounts are reported to have earned approximately $87 million from the scheme, while total investor losses have been reported at figures ranging from $251 million to $286 million depending on the source and time window analyzed. A November 2025 Argentine congressional report identified 114,410 wallets that lost money trading $LIBRA following Milei's endorsement, with project insiders cashing out approximately $107 million worth of tokens. Earlier estimates placed the number of affected investors at approximately 44,000 to 74,000 individuals. The variation in reported figures reflects differing analytical methodologies and time windows. Reuters, citing Chainalysis, reported approximately $99 million in withdrawals from creator-linked wallets. The losses were concentrated among retail participants who entered the market after Milei's endorsement, while the token was already near peak prices.","heading":"Investor Losses","sources":[{"url":"https://en.wikipedia.org/wiki/$Libra_cryptocurrency_scandal","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://cryptonews.com/news/javier-milei-linked-libra-token-99m-withdrawals-chainalysis/","name":"cryptonews.com","type":"other","credibility":3},{"url":"https://coinedition.com/new-report-links-president-milei-to-libra-crypto-fraud-heres-what-investigators-found/","name":"coinedition.com","type":"other","credibility":3},{"url":"https://www.theblock.co/post/379796/argentinas-milei-provided-essential-collaboration-libra-project-congressional-report-finds","name":"theblock.co","type":"other","credibility":3}],"severity":"medium"},{"content":"Hayden Mark Davis, born November 27, 1996, is an American cryptocurrency marketer and CEO of the Delaware-registered company Kelsier Ventures, identified as the primary entity behind the $LIBRA token launch. Davis has been described by investigators as having prior involvement in memecoin pump-and-dump schemes, with Bubblemaps and CoffeeZilla's on-chain analysis alleging that the same group behind $LIBRA also orchestrated the $MELANIA meme coin launch, as well as additional projects codenamed TRUST, KACY, VIBES, and HOOD. Davis claimed a profit of approximately $113 million from the token and stated publicly that he had been an adviser to the Argentine government and that the advertising campaign had been pre-agreed with Milei's team — claims Milei denied. Following the crash, Argentine courts issued an order freezing Davis's financial assets. On March 13, 2025, an Argentine prosecutor sought permission to issue an Interpol Red Notice for Davis, citing concern that his financial resources could allow him to relocate or evade arrest. Davis subsequently testified in New York, where he denied allegations of fraud and insider trading, attributing the price collapse to Milei's decision to delete his promotional post.","heading":"Key Operators: Hayden Davis and Kelsier Ventures","sources":[{"url":"https://en.wikipedia.org/wiki/$Libra_cryptocurrency_scandal","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://finance.yahoo.com/news/argentina-freezes-hayden-davis-assets-223000417.html","name":"finance.yahoo.com","type":"other","credibility":3},{"url":"https://fortune.com/crypto/2025/03/13/hayden-davis-javier-milei-interpol-red-notice-prosecutor-asked-judge-melania/","name":"fortune.com","type":"other","credibility":3},{"url":"https://buenosairesherald.com/politics/libra-scandal-hayden-davis-denies-scam-accusations-in-new-york-declaration","name":"buenosairesherald.com","type":"other","credibility":3},{"url":"https://www.panewslab.com/en/articles/4qfqxh2m","name":"panewslab.com","type":"other","credibility":3},{"url":"https://decrypt.co/306226/on-chain-evidence-links-libra-token-to-melania-meme-coin-issuers","name":"decrypt.co","type":"other","credibility":3}],"severity":"medium"},{"content":"Mauricio Novelli, an Argentine trader described as an informal adviser to Milei who had known the president since at least 2021, is alleged to have introduced Davis and Kelsier Ventures to the Milei orbit. Court documents from the ongoing federal investigation show that Milei exchanged seven phone calls with Novelli on the night of February 14, 2025, both before and after the promotional post — specifically between 6:54 PM and 7:03 PM. Novelli's home was raided and his assets were frozen as part of the investigation; his family members' bank activities were also placed under scrutiny as of May 2025. A forensic review of devices seized from Novelli, conducted by Argentina's Directorate of Technological Support for Criminal Investigations (DATIP), uncovered a draft document dated February 11, 2025 — three days before Milei's post. The document references a figure identified as Hayden Davis and outlines an alleged three-part payment structure: $1.5 million in liquid tokens or cash as an advance; $1.5 million tied to Milei publicly announcing Davis as his adviser on X; and a final $2 million contingent on a formal consulting contract signed in person by Milei. The existence of this document is alleged and is the subject of active judicial proceedings; Milei denies prior knowledge or a financial arrangement.","heading":"Role of Mauricio Novelli and Alleged $5 Million Deal","sources":[{"url":"https://www.theblock.co/post/393639/probe-reveals-document-detailing-alleged-5-million-deal-linking-milei-to-libra-promotion-report","name":"theblock.co","type":"other","credibility":3},{"url":"https://cointelegraph.com/news/milei-libra-promotion-5m-draft-deal-found-novelli-phone","name":"cointelegraph.com","type":"other","credibility":3},{"url":"https://www.theblock.co/post/396436/argentina-milei-phone-calls-leader-libra-crypto-project-collapsed-nyt","name":"theblock.co","type":"other","credibility":3},{"url":"https://en.wikipedia.org/wiki/$Libra_cryptocurrency_scandal","name":"en.wikipedia.org","type":"other","credibility":3}],"severity":"medium"},{"content":"Meteora, a Solana-based decentralized exchange platform, hosted the liquidity pools used in the $LIBRA launch. Unlike standard memecoin launches where developers provide their own liquidity passively, Meteora actively managed LIBRA's liquidity pools, giving insiders direct control over market behavior. The LIBRA team created liquidity pools on Meteora and subsequently withdrew over $100 million from the pool, triggering widespread criticism of the platform. On February 18, 2025, Meteora co-founder Ben Chow announced his resignation, with Jupiter co-founder Meow stating the decision was made because Chow had shown 'a lack of judgment and care' in handling Meteora's operations. Meow simultaneously asserted that neither Jupiter nor Meteora had committed insider trading or received tokens inappropriately. Meteora subsequently retained law firm Fenwick & West to conduct an independent investigation and publish a public report.","heading":"Meteora's Role and Ben Chow Resignation","sources":[{"url":"https://thedefiant.io/news/defi/meteora-faces-insider-trading-allegations-as-ceo-ben-chow-resigns","name":"thedefiant.io","type":"other","credibility":3},{"url":"https://www.benzinga.com/markets/cryptocurrency/25/02/43796471/meteora-co-founder-resigns-on-heels-of-solana-meme-coin-libra-controversy","name":"benzinga.com","type":"other","credibility":3},{"url":"https://crypto.news/libra-solana-jupiter-meteora-scandal/","name":"crypto.news","type":"other","credibility":3}],"severity":"medium"},{"content":"Shortly after publication, Milei deleted his original promotional X post and stated in a follow-up that he 'had no connection to the enterprise' and had not been informed of the project's details before sharing it. He denied any prior agreement or financial arrangement with the $LIBRA team. Milei ordered the Anti-Corruption Bureau to investigate, and established a 'Unit for Investigation Tasks' within the presidency. Over 112 criminal complaints were filed against Milei and other parties involved by February 17, 2025. Deputies from the opposition Unión por la Patria (Peronist) coalition initiated impeachment proceedings, though a second impeachment bill from Socialist Party lawmaker Esteban Paulón did not gather sufficient support in the Impeachment Commission. Argentina's Anti-Corruption Office subsequently ruled that Milei's promotion of the token did not violate public service ethics rules, determining his X post was made in a personal capacity as 'an economist and not a public official.' The federal judicial investigation continues, presided over by Judge Marcelo Martínez de Giorgi. The Argentine congressional investigation was formally approved on April 8, 2025.","heading":"President Milei's Response and Political Fallout","sources":[{"url":"https://fortune.com/crypto/2025/02/18/javier-milei-memecoin-libra-cryptocurrency-crash-argentina-federal-judge-investigation/","name":"fortune.com","type":"other","credibility":3},{"url":"https://buenosairesherald.com/politics/judiciary/milei-is-already-facing-impeachment-requests-and-lawsuits-in-libra-crypto-scandal","name":"buenosairesherald.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2025/02/16/argentina-opposition-threatens-milei-with-impeachment-over-libra-token-controversy-reuters","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.ccn.com/news/crypto/libra-crash-altcoin-crunch-javier-milei-criminal-charges/","name":"ccn.com","type":"other","credibility":3},{"url":"https://en.wikipedia.org/wiki/$Libra_cryptocurrency_scandal","name":"en.wikipedia.org","type":"other","credibility":3}],"severity":"medium"},{"content":"In late November 2025, an Argentine congressional commission published a 200-page report titled '$LIBRA WAS NOT AN ISOLATED EVENT,' concluding that Milei allegedly used his presidency to promote a scam and that without his tweet, $LIBRA would not have achieved the purchase volume it did. The report states that the opposition-led committee found Milei provided 'essential collaboration' for the project and suggests his conduct warrants an evaluation for misconduct in office. The report also noted that $LIBRA was not Milei's first such incident, pointing to his prior promotion of CoinX (2021), which was later banned and resulted in significant losses, and Vulcano Game NFT (2022), whose token price fell to zero. Legal proceedings continue in both Argentine and U.S. courts. Multiple international law firms have initiated class action lawsuits. As of early 2026, the federal investigation presided over by Judge Martínez de Giorgi remains active, with asset freezes in place against Davis, Novelli, and other key figures.","heading":"Congressional Report and Ongoing Legal Proceedings","sources":[{"url":"https://www.theblock.co/post/379796/argentinas-milei-provided-essential-collaboration-libra-project-congressional-report-finds","name":"theblock.co","type":"other","credibility":3},{"url":"https://coinedition.com/new-report-links-president-milei-to-libra-crypto-fraud-heres-what-investigators-found/","name":"coinedition.com","type":"other","credibility":3},{"url":"https://cryptonews.com.au/news/argentine-report-alleges-president-milei-enabled-libra-crypto-scandal-131821/","name":"cryptonews.com.au","type":"other","credibility":3},{"url":"https://buenosairesherald.com/politics/judiciary/libra-crypto-scandal-whats-the-status-of-the-legal-inquiry-in-argentina-and-the-us","name":"buenosairesherald.com","type":"other","credibility":3},{"url":"https://en.wikipedia.org/wiki/$Libra_cryptocurrency_scandal","name":"en.wikipedia.org","type":"other","credibility":3}],"severity":"medium"},{"content":"On-chain analysis conducted by Bubblemaps and investigator CoffeeZilla uncovered evidence suggesting the same entity behind $LIBRA also orchestrated the $MELANIA meme coin launch, promoted by U.S. First Lady Melania Trump. Bubblemaps' analysis further alleged that the same group executed several other token launches — codenamed TRUST, KACY, VIBES, and HOOD — following similar pump-and-dump patterns. In April 2025, blockchain data provider Bubblemaps reported that Davis removed $100 million in liquidity from $LIBRA using a strategy similar to the one allegedly employed with $MELANIA. Chainalysis separately confirmed that eight wallets linked to the token creator were involved in the withdrawals. The alleged cross-scheme pattern, if substantiated, would indicate a recurring operational structure rather than an isolated incident.","heading":"Links to Other Token Schemes","sources":[{"url":"https://decrypt.co/306226/on-chain-evidence-links-libra-token-to-melania-meme-coin-issuers","name":"decrypt.co","type":"other","credibility":3},{"url":"https://www.chaincatcher.com/en/article/2167933","name":"chaincatcher.com","type":"other","credibility":3},{"url":"https://protos.com/libra-co-creator-hayden-davis-caught-cashing-out-millions-report/","name":"protos.com","type":"other","credibility":3},{"url":"https://finance.yahoo.com/news/argentina-freezes-hayden-davis-assets-223000417.html","name":"finance.yahoo.com","type":"other","credibility":3}],"severity":"medium"}],"timeline":[{"date":"2021","event":"Milei promotes CoinX, a cryptocurrency project later banned by Argentine regulators; thousands of investors report losses.","source":"","date_original":"2021-01-01"},{"date":"2022","event":"Milei promotes Vulcano Game NFT; the token's price subsequently falls to zero.","source":"","date_original":"2022-01-01"},{"date":"2025-02-11","event":"A draft document dated this day, later recovered from Novelli's seized device, allegedly outlines a $5 million three-part payment deal tied to Milei's promotion of $LIBRA.","source":""},{"date":"2025-02-14","event":"$LIBRA token created at 6:58 PM Argentina time by Kelsier Ventures on Solana; liquidity pools opened on Meteora. On-chain records show one address received 1 million tokens approximately 20 minutes before Milei's tweet.","source":""},{"date":"2025-02-14","event":"At 7:01 PM Argentina time, President Milei posts endorsement of $LIBRA to ~3.8 million followers on X, Instagram, and Facebook. Token price surges to $5.20 within 40 minutes; market cap reaches ~$4.6 billion.","source":""},{"date":"2025-02-14","event":"Within three hours of Milei's post, insider wallets begin extracting liquidity. Token collapses approximately 89% to ~$0.99. Milei deletes his promotional post and issues a denial of prior knowledge.","source":""},{"date":"2025-02-15","event":"Market cap has fallen from ~$4.6 billion to ~$162 million. At least 44,000–74,000 investors have suffered losses.","source":""},{"date":"2025-02-17","event":"Over 112 criminal complaints filed in Argentina against Milei and other parties. Opposition coalition announces impeachment proceedings.","source":""},{"date":"2025-02-18","event":"Meteora co-founder Ben Chow resigns following allegations of insider trading and failures of judgment related to $LIBRA. TRM Labs publishes on-chain analysis documenting pre-tweet positioning and $90 million in consolidated funds.","source":""},{"date":"2025-02-19","event":"Chainalysis confirms eight wallets linked to the token creator withdrew approximately $99 million. Reuters reports findings.","source":""},{"date":"2025-03-13","event":"Argentine prosecutor seeks Interpol Red Notice for Hayden Davis, citing risk that financial resources could enable him to evade arrest.","source":""},{"date":"2025-04-08","event":"Argentine Congress formally approves a congressional investigation into the $LIBRA scandal.","source":""},{"date":"2025-04","event":"Bubblemaps reports Davis removed $100 million in liquidity from $LIBRA using a strategy allegedly similar to the one used with the $MELANIA token.","source":"","date_original":"2025-04-01"},{"date":"2025-05","event":"Argentine federal investigation continues; Novelli's family members' bank activities placed under scrutiny. Hayden Davis testifies in New York, denying fraud allegations.","source":"","date_original":"2025-05-01"},{"date":"2025-11","event":"Argentine congressional commission publishes a 200-page report concluding Milei provided 'essential collaboration' for the $LIBRA project and allegedly used the presidency to promote a scam. Report identifies 114,410 wallets with losses and $107 million in insider withdrawals.","source":"","date_original":"2025-11-01"}],"sources_used":[{"url":"https://en.wikipedia.org/wiki/$Libra_cryptocurrency_scandal","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://decrypt.co/306594/who-launched-president-milei-libra-solana-meme-coin","name":"decrypt.co","type":"other","credibility":3},{"url":"https://decrypt.co/306134/did-argentina-president-javier-milei-launch-solana-meme-coin","name":"decrypt.co","type":"other","credibility":3},{"url":"https://cointelegraph.com/news/kip-protocol-reveals-involvement-javier-milei-endorsed-libra","name":"cointelegraph.com","type":"other","credibility":3},{"url":"https://www.trmlabs.com/resources/blog/the-libra-affair-tracking-the-memecoin-that-launched-a-scandal-in-argentina","name":"trmlabs.com","type":"other","credibility":3},{"url":"https://cryptonews.com/news/javier-milei-linked-libra-token-99m-withdrawals-chainalysis/","name":"cryptonews.com","type":"other","credibility":3},{"url":"https://coinpedia.org/research-report/the-libra-memecoin-scam-inside-the-presidential-pump-and-dump-that-led-to-a-4-billion-crash/","name":"coinpedia.org","type":"other","credibility":3},{"url":"https://coinedition.com/new-report-links-president-milei-to-libra-crypto-fraud-heres-what-investigators-found/","name":"coinedition.com","type":"other","credibility":3},{"url":"https://www.theblock.co/post/379796/argentinas-milei-provided-essential-collaboration-libra-project-congressional-report-finds","name":"theblock.co","type":"other","credibility":3},{"url":"https://finance.yahoo.com/news/argentina-freezes-hayden-davis-assets-223000417.html","name":"finance.yahoo.com","type":"other","credibility":3},{"url":"https://fortune.com/crypto/2025/03/13/hayden-davis-javier-milei-interpol-red-notice-prosecutor-asked-judge-melania/","name":"fortune.com","type":"other","credibility":3},{"url":"https://buenosairesherald.com/politics/libra-scandal-hayden-davis-denies-scam-accusations-in-new-york-declaration","name":"buenosairesherald.com","type":"other","credibility":3},{"url":"https://www.panewslab.com/en/articles/4qfqxh2m","name":"panewslab.com","type":"other","credibility":3},{"url":"https://decrypt.co/306226/on-chain-evidence-links-libra-token-to-melania-meme-coin-issuers","name":"decrypt.co","type":"other","credibility":3},{"url":"https://www.theblock.co/post/393639/probe-reveals-document-detailing-alleged-5-million-deal-linking-milei-to-libra-promotion-report","name":"theblock.co","type":"other","credibility":3},{"url":"https://cointelegraph.com/news/milei-libra-promotion-5m-draft-deal-found-novelli-phone","name":"cointelegraph.com","type":"other","credibility":3},{"url":"https://www.theblock.co/post/396436/argentina-milei-phone-calls-leader-libra-crypto-project-collapsed-nyt","name":"theblock.co","type":"other","credibility":3},{"url":"https://thedefiant.io/news/defi/meteora-faces-insider-trading-allegations-as-ceo-ben-chow-resigns","name":"thedefiant.io","type":"other","credibility":3},{"url":"https://www.benzinga.com/markets/cryptocurrency/25/02/43796471/meteora-co-founder-resigns-on-heels-of-solana-meme-coin-libra-controversy","name":"benzinga.com","type":"other","credibility":3},{"url":"https://crypto.news/libra-solana-jupiter-meteora-scandal/","name":"crypto.news","type":"other","credibility":3},{"url":"https://fortune.com/crypto/2025/02/18/javier-milei-memecoin-libra-cryptocurrency-crash-argentina-federal-judge-investigation/","name":"fortune.com","type":"other","credibility":3},{"url":"https://buenosairesherald.com/politics/judiciary/milei-is-already-facing-impeachment-requests-and-lawsuits-in-libra-crypto-scandal","name":"buenosairesherald.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2025/02/16/argentina-opposition-threatens-milei-with-impeachment-over-libra-token-controversy-reuters","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.ccn.com/news/crypto/libra-crash-altcoin-crunch-javier-milei-criminal-charges/","name":"ccn.com","type":"other","credibility":3},{"url":"https://cryptonews.com.au/news/argentine-report-alleges-president-milei-enabled-libra-crypto-scandal-131821/","name":"cryptonews.com.au","type":"other","credibility":3},{"url":"https://buenosairesherald.com/politics/judiciary/libra-crypto-scandal-whats-the-status-of-the-legal-inquiry-in-argentina-and-the-us","name":"buenosairesherald.com","type":"other","credibility":3},{"url":"https://www.chaincatcher.com/en/article/2167933","name":"chaincatcher.com","type":"other","credibility":3},{"url":"https://protos.com/libra-co-creator-hayden-davis-caught-cashing-out-millions-report/","name":"protos.com","type":"other","credibility":3}],"source_tags":[],"addresses":[],"reviewed":false,"reviewed_by":null,"model_used":"claude-sonnet-4-6","created_at":"2026-05-30T18:33:08.764205+00:00","updated_at":"2026-08-29T01:34:08.24+00:00"}}