Argentina’s President Javier Milei faces impeachment calls after promoting the LIBRA token, which collapsed from nearly $5 to under $1. Hayden Davis, involved in the launch, admitted to a profit scheme that backfired, leading to $251 million in losses. Additionally, Bybit suffered the largest crypto heist ever, losing $1.5 billion, reportedly to North Korean hackers.
Argentina is experiencing significant political upheaval following President Javier Milei’s ill-fated venture into cryptocurrency. Promoting the obscure token LIBRA on February 14, he claimed it would revitalize the economy and support small businesses. The post, which went viral and attracted thousands of investors, quickly saw the token’s value plummet from nearly $5 to under $1, prompting legal action against Milei and an investigation into potential fraud.
Lawyer Claudio Lozano spearheaded over 100 fraud complaints against the president as a judge initiated an inquiry. Crypto entrepreneur Hayden Davis, who aided in the token’s launch, admitted to profiting roughly $100 million through a method called ‘sniping,’ an aggressive tactic involving rapid buying of tokens designed to artificially inflate prices. Davis described the incident as a poorly conceived experiment that went awry, emphasizing that Milei himself is not corrupt.
In a stark reflection of the losses incurred, blockchain analytics firm Nansen reported that about 86% of LIBRA traders have suffered financial losses totaling $251 million. Meanwhile, despite the turmoil, Bybit, a major crypto exchange, reported a theft of $1.5 billion in digital assets, marking the largest crypto heist to date. North Korean hackers are suspected to be behind this breach, as funds, primarily in ether, were swiftly dispersed across various wallets.
On the regulatory front, Coinbase anticipates the potential dismissal of its lawsuit by the S.E.C., while some traders affected by the FTX collapse are expected to receive compensation. Additionally, Figure Technologies received approval for the launch of a pioneering interest-bearing stablecoin. This combination of recent events underscores the volatility and risks inherent in the cryptocurrency market.
The recent events in Argentina surrounding President Javier Milei’s endorsement of the LIBRA token illustrate the volatile nature of cryptocurrency investments and raise significant regulatory concerns. Furthermore, the cyber theft of $1.5 billion from Bybit highlights the ongoing security challenges in the crypto sector. Overall, these incidents reflect the urgent need for increased scrutiny and better investor protections in the rapidly evolving digital asset landscape.
Original Source: www.forbes.com