Argentina’s President Javier Milei faces backlash over a failed crypto promotion for the LIBRA token, which led to significant investor losses and legal actions. Concurrently, the crypto exchange Bybit experienced a historic breach, resulting in $1.5 billion stolen, allegedly by North Korean hackers. These events illuminate the volatility and risks inherent in the crypto market.
Argentina is currently embroiled in a significant crypto scandal following President Javier Milei’s promotion of a little-known token, LIBRA. On February 14, Milei posted on X, asserting that LIBRA would invigorate the economy by financing small businesses. His declaration attracted heavy investments, and LIBRA’s value surged to nearly $5 before plummeting to under $1 shortly thereafter, leading to widespread discontent among investors.
Mileu quickly retracted his post, claiming ignorance about the project’s specifics. In response, opposition leader Claudio Lozano and others lodged over 100 fraud claims, prompting a judicial investigation into the matter. Crypto entrepreneur Hayden Davis revealed his involvement in LIBRA’s launch and detailed his controversial practice of ‘sniping,’ which, in regulated markets, resembles illegal front-running.
Davis attempted to mitigate backlash by stating that he would not personally benefit from the funds and characterized the events as an unfortunate “experiment that happened to go very wrong.” Despite his claims, stark data indicated that 86% of LIBRA traders incurred losses, amounting to approximately $251 million, while a few fortunate investors reportedly profited by $180 million.
In an unrelated development, Bybit, a Dubai-based cryptocurrency exchange, suffered the largest recorded hack in the crypto industry’s history, with $1.5 billion stolen from its cold wallets. Analysts attribute the breach to suspected North Korean hackers, who have a track record of orchestrating high-profile thefts. Following the event, CEO Ben Zhou reassured users that the company’s ability to cover losses ensures the exchange’s continued solvency.
The series of mishaps, including President Milei’s ill-fated promotion of LIBRA and the hacking of Bybit, underscores the fragility of the cryptocurrency landscape. With widespread investor losses and turbulent market conditions, the necessity for regulatory oversight has become more apparent than ever. These incidents highlight the risks associated with unregulated crypto activities and the pressing need for robust consumer protection mechanisms.
Original Source: www.forbes.com
