LIBRA Scandal Rocks Solana: How Insiders Cash Out at the Top
On February 14, Solana (SOL) faced its biggest scandal as the FTX (FTT) collapse.A new meme coin,LIBRA,emerged and quickly became the center of a financial storm. Argentina’s President, Javier Milei, endorsed it publicly, sparking a frenzy.
The price of LIBRA soared to a multi-billion dollar market cap within minutes. However,it crashed just as fast,leaving retail investors devastated. Insiders, including Kelsier Ventures, Meteora, and Jupiter, allegedly cashed out with millions.
Kelsier Ventures,led by hayden Davis,is accused of orchestrating liquidity manipulation. Meteora, a major liquidity provider, facilitated trades that allowed insiders to exit before retail investors could react.Jupiter, Solana’s dominant decentralized exchange, is under scrutiny for its role in the scheme.
The origins of LIBRA are unclear. It was minted on the Solana blockchain and endorsed by Milei,who later deleted his post. The price surged to $4.55, pushing its market cap past $4 billion. However, it plummeted 95% within hours, leaving retail investors with worthless tokens.
Less than 14% of traders made a profit. The most successful wallet walked away with $6.5 million. The rest were wiped out. Milei now claims he had no real connection to the project, but the political backlash was swift. Argentina’s opposition accused him of orchestrating a financial scam.
Former president Cristina Fernández de Kirchner condemned the incident, stating, “Thousands who trusted him lost millions, while a select few made fortunes due to privileged information.”
The Kelsier Connection: Unveiling the LIBRA Collapse
Following the dramatic fall of LIBRA, Hayden Davis, CEO of Kelsier Ventures, found himself under the spotlight. Davis,once a lesser-known figure in crypto,had a meaningful role in the Solana meme coin boom.His involvement in controversial token launches like MELANIA and M3M3 raised eyebrows.
Blockchain data revealed that wallets linked to Kelsier were early accumulators of LIBRA tokens. They sold their holdings at the peak, leaving others to bear the brunt of the crash. Davis denied any wrongdoing, claiming the funds were “Argentina’s,” but his explanations did little to quell suspicions.
Further complications arose when it was revealed that Davis introduced Kelsier to Meteora, a respected name in Solana’s DeFi ecosystem. Meteora managed LIBRA’s liquidity pools, giving it significant control over the token’s market behavior.
- DefiTuna’s founder accused Meteora of enabling insiders to cash out at peak prices.
- Alleged chats suggested a similar liquidity structure for MELANIA, where Meteora took a 1% cut.
Meteora’s co-founder, Ben Chow, denied any involvement in insider trading. Though, the controversy continues to cast a shadow over the solana ecosystem, raising questions about transparency and ethics in the crypto world.
LIBRA collapse Shakes solana Ecosystem
The collapse of the LIBRA token has sent shockwaves through the Solana ecosystem, causing a 21% drop in SOL prices. The controversy centers around Meteora, a liquidity provider, and its co-founder, Ben Chow. Chow resigned on February 18, admitting to poor judgment but denying financial misconduct.
Meow, co-founder of both Jupiter and Meteora, defended Chow’s character. He stated, “Ben has been helpful and kind.Let’s be kind to him as he clears his name.” Meow also announced an self-reliant legal review to address the allegations.
However, the choice of Fenwick & West as legal counsel drew criticism. The firm had ties to FTX,raising concerns about impartiality. Meow later admitted they might reconsider their choice.
Jupiter’s role in the controversy is also under scrutiny. A wallet linked to a Jupiter employee made small trades on LIBRA before the crash, suggesting insider knowledge. Jupiter’s leadership announced an independent review but faced backlash.
The scandal has raised questions about Solana’s decentralized finance ecosystem.Users are frustrated with the lack of transparency and accountability. One user noted, “Silence from Solana leadership as their community gets scammed daily.”
The collapse has also brought attention to previous token launches, like MELANIA, which resulted in significant losses. The community demands better verification and promotion practices to prevent future scams.
LIBRA Scandal Unveils Crypto Industry’s Dark Side
The crypto world is in turmoil following the LIBRA launch scandal. Key players like Jupiter and Meteora are at the center of controversy.
It’s been revealed that Jupiter’s owner, Meow, is also the real owner of Meteora. This connection was hidden until now. Ben, a Meteora figure, lied about his involvement with LIBRA and other Kelsier launches. He was fired after the truth came out.
Some insiders beleive Solana’s leadership knew about these connections all along. They’ve stayed silent, not commenting on the scandal.
The LIBRA launch involved huge financial movements and high-profile figures. this has led to questions about possible legal consequences. One observer said, “These people will likely face prison time for running 9-figure scams.”
Despite the public outcry, no official regulatory action has been announced yet.Crypto.news has tried to contact Solana, Jupiter, and Meteora for comments but has not received any responses.
This scandal highlights the need for transparency in the crypto industry. It’s a reminder that trust is crucial in this rapidly evolving space.
