LIBRA Token Crashes 85% After Milei’s Promotion – $20M Insider Profits Exposed

Argentine President Javier Milei promoted the LIBRA token, saying it would help small businesses. But instead of excitement, his post on X raised concerns, with many suspecting a potential scam. Facing backlash, Milei quickly deleted the post, insisting he had no financial ties to the project.

Milei has been pushing economic reforms, but foreign investors remain cautious. While inflation is easing and new policies are in place, businesses continue to leave. The country also faces U.S. trade tariffs and struggles in key industries, making a full recovery uncertain.

From a $4.5 Billion Hype to Sudden Collapse

At first, LIBRA seemed like a success, reaching a $4.5 billion valuation within hours. But the excitement didn’t last. Reports surfaced that developers withdrew $87 million in USDC and SOL from the project, causing the token’s price to plunge 85%. Investors panicked, and those who bought in early saw average losses of over 56% on their initial investment.

Insider Trading Suspicions

Blockchain analysts soon detected unusual activity. On-chain expert EmberCN found that certain wallets had withdrawn funds from exchanges before Milei’s post, then bought LIBRA immediately after and sold once the price spiked. These insiders reportedly made around $20 million in profit.

Adding to the concern, about 82% of LIBRA’s supply is controlled by a few connected wallets. This concentration gives a small group significant control over the token’s price, raising fears of manipulation.

Calls for Accountability

Amid the controversy, Justin Sun Justin Sun Justin Sun is a well-known figure in the cryptocurrency industry, an entrepreneur, and a former diplomat. He established the Tron blockchain DAO system and rose to prominence in the cryptocurrency space as a result of his work. As a diplomat, he represented Grenada permanently at the WTO in Geneva.   Quick Facts   Full Name Justin Sun Birth 30-07-1990 in Xining, Qinghai, China Nationality Chinese, Grenadian Education Peking University, University of Pennsylvania Marital Status Unmarried as of 2025 Net Worth $2B estimated   Additionally, Justin mentors BitTorrent, Animoca, Poloniex, and other blockchain projects. He was in the news recently due to the standoff with the US SEC charges, and a meal with Warren Buffett has made headlines.   Justin Sun - Career Highlights   2017: Founded TRON to revolutionize decentralized content sharing and blockchain scalability. 2018: Acquired BitTorrent to integrate decentralized file sharing into the TRON ecosystem. 2018: Launched TRON’s main net, offering a high-speed, scalable blockchain for digital assets. 2018: Achieved record-breaking TRX token sales, fueling mass crypto adoption globally. 2019: Forged strategic global partnerships to expand TRON's decentralized ecosystem. 2020: Advanced TRON’s role in decentralized finance (DeFi) with innovative blockchain projects. 2021: Earned media recognition in Forbes and Bloomberg as a visionary in the crypto space. 2022: Expanded TRON’s ecosystem with new DeFi, NFT, and Web3 initiatives. 2023: Pushed forward groundbreaking Web3 and NFT projects, cementing TRON's industry leadership.   In November 2024, Justin Sun contributed $30 million to World Liberty Financial (WLF), a cryptocurrency venture backed by the Trump family. He intervened when the project seemed to be having issues raising the money it needed, putting the Trump family at risk of receiving a payoff. EntrepreneurInvestorCrypto and Blockchain ExpertChief Executive Officer voiced respect for Milei but urged him to take responsibility for the LIBRA issue. He called for those involved to return the stolen funds and face legal action, emphasizing the need to protect investors.

Meanwhile, some X users weren’t surprised, seeing this as another case of powerful figures executing a well-planned financial scheme.

Who’s Backing LIBRA?

LIBRA is connected to KIP Network Inc., the company behind the KIP Protocol, a Web3 project backed by Animoca Ventures. KIP Network has been involved in Argentina’s crypto space and even worked with the Buenos Aires government. However, their role in the LIBRA sell-off is unclear, leaving many investors feeling uneasy.

Coinbase’s head of product, Conor Grogan, commented on the situation. He said that major token launches like this are usually planned long before they go public. His comment suggests that LIBRA may have been designed to grab quick cash from the start.

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Another Government-Backed Token Failure?

LIBRA’s collapse is similar to the Central African Republic’s CAR token. That project also made big promises, briefly reaching a $1 billion market cap before crashing below $20 million. Both cases serve as warnings that a government connection doesn’t guarantee a crypto token is a safe investment.

Once again, the crypto world proves that when it comes to high-risk tokens, even a government connection doesn’t guarantee stability.