Bubblemaps Investigation Reveals $100M LIBRA Token Scheme

Recent developments surrounding the LIBRA meme coin have sparked concerns of a potential rug pull, with blockchain analysis hinting at insider trading activities. Prior to its collapse, experts had voiced skepticism about LIBRA's tokenomics and its long-term viability. Investigations now reveal connections between LIBRA’s creators and previous questionable schemes, suggesting a pattern of market manipulation.

Blockchain analytics firm Bubblemaps has unearthed new on-chain evidence linking the creators of LIBRA and MELANIA tokens to insider trading and pump-and-dump schemes.

Their investigation identified a wallet, P5tb4, which profited $2.4 million from dealing in MELANIA, later transferring these funds to an address, 0xcEA, associated with MELANIA’s creator. Further scrutiny showed this address also financed DEfcyK, the entity behind LIBRA, who reportedly withdrew $87 million. Moreover, wallet 0xcEA engaged in similar activities with LIBRA, earning $6 million through various interconnected addresses via the USDC Cross-Chain Transfer Protocol (CCTP).

Bubblemaps disclosed links between 0xcEA and other token launches, like TRUST, KACY, VIBES, and HOOD, characterized by brief market lifespans. These findings suggest a concerted effort to launch and manipulate meme coins for substantial insider profits, with LIBRA alone generating over $100 million.

Jupiter crypto exchange clarified its stance, noting awareness of a token tied to Argentine President Javier Milei two weeks before the launch but denied direct involvement. They asserted no participation in insider trading or receipt of LIBRA tokens, although the token's advent was an “open secret” within crypto circles. The exchange refuted allegations of pre-verifying LIBRA's contract address, emphasizing that verification followed public confirmation and increased trading activity. Jupiter stands by its decision to list LIBRA on a watchlist to shield users from potential fraud. After an internal review found no insider trading evidence, the exchange remains open to investigating credible allegations.

In response to backlash, Hayden Davis, LIBRA’s founder, attributed the complaints to investors excluded from insider deals. During an interview with YouTuber Coffeezilla, Davis framed LIBRA’s debacle as a failure rather than fraud, arguing meme coin trading inherently benefits insiders. He maintained that projects launched sans insider engagement would struggle for stability. "Most memecoin players are aware of the insider advantage," Davis commented, suggesting discontent stems from outsider dissatisfaction.

LIBRA experienced a brief surge when promoted by Milei on social platforms, driving its market cap above $4 billion before plummeting. The ensuing political repercussions for Milei have spurred calls for his impeachment. The Argentine government has requested an Anti-Corruption Office investigation into potential misconduct by Milei or related officials, with the judiciary set to assess involvement in financial misconduct related to LIBRA, including activities by KIP Protocol collaborators.

In the wake of allegations, KIP Protocol addressed assertions regarding its role in the LIBRA project, refuting claims in an Argentine presidential statement. The company informed CryptoPotato that CEO Julian Peh met President Javier Milei at a tech forum on October 19, 2024.

The meeting, facilitated by event organizer Mauricio Novelli, who KIP Protocol clarified has no affiliation with the company, focused on AI, technology, and Argentine investment prospects without discussion of LIBRA. KIP Protocol maintains it was not involved in the planning, management, or launch of the LIBRA token.