The Crypto Scandal Unfolds with Allegations of Fraud Against Hayden Davis in Relation to the LIBRA Memecoin
The unfolding saga surrounding the LIBRA memecoin takes a new twist as Argentina’s President Javier Milei comes under intense scrutiny for his involvement. Recent developments have seen Milei publicly disavow any knowledge of the fraudulent aspects associated with LIBRA, a cryptocurrency he had initially supported.
Liberated briefly saw a surge in popularity before meeting its demise, becoming embroiled in a fraudulent scheme.
The Ongoing Scandal Involving LIBRA Memecoin
Adding to the controversy, founder of Barstool Sports, Dave Portnoy, stepped forward to disclose that he returned 6 million LIBRA tokens to the project’s founder, Hayden Davis.
During an X Spaces event on February 16, Portnoy revealed that he had received around 6 to 6.5 million LIBRA tokens as compensation for his promotional efforts for the memecoin on social media.
However, as Davis had requested him not to divulge the payment for his promotion, Portnoy chose to return the tokens. He expressed,
“I cannot accept tokens without being able to disclose that they were given to me, and that I am involved in the project. Therefore, I promptly returned the tokens. All of this was before I became aware of the impending disaster.”
Undoubtedly, this development has sparked further queries about the validity of memecoin ventures and their endorsements.
Is There More to Uncover?
Portnoy also revealed that he had purchased additional LIBRA tokens and confessed to retaining them, despite their diminishing value. Surprisingly, he remained in contact with founder Hayden Davis as the project’s collapse unfolded.
Even amidst the chaos, Portnoy harbors a belief that Davis did not deliberately engineer a rug-pull. He is even speculating that the abrupt withdrawal of support by Argentine President Javier Milei played a role in the downfall.
How does $MELANIA Factor into this Controversy?
Meanwhile, an investigation jointly conducted by blockchain analytics platform Bubblemaps and on-chain researcher Stephen Findeisen (CoffeeZilla) unearthed on-chain evidence linking the ill-fated LIBRA debut to another contentious project, MELANIA – indication of a common entity overseeing both initiatives.
According to Bubblemaps,
“After studying cross-chain transactions and timing patterns, we strongly believe this to be the case.”
Moreover, the investigation laid bare a convoluted network of intertwined wallet activities between the LIBRA and MELANIA projects, revealing how funds from one project were channeled into the other through cross-chain transfers.
What Lies Ahead?
Amid these allegations, the value of the LIBRA memecoin has plummeted. Current data from DexScreener shows it trading at $0.3500, reflecting a 13.84% decrease in the last 24 hours.
As anticipated, this development has deepened the uncertainties surrounding an already controversial situation, prompting investors and industry analysts to question the true essence of such projects and their broader impact on the cryptocurrency realm.