US Justice Department Investigates Libra Memcoin Crash
Date: 2025-02-27 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
The US Justice Department has launched an investigation into the collapse of the Libra cryptocurrency project. The case is being handled by the Fraud Unit, which specializes in uncovering financial crimes with international involvement. The Department of Homeland Security, the FBI, and the SEC may also be involved in the process, indicating the seriousness of the situation.
In addition to the US authorities, Argentine authorities are also investigating. Their interest is focused on the possible involvement of Argentine President Javier Miley in the Libra project. Investigators are checking whether he could have used his influence for personal financial interests.
Libra attracted significant investment, but its collapse left investors with losses of between $87 million and $107 million. Among those who could have benefited from the situation are Hayden Adams of Kelsier Ventures, who made a profit of $100 million. Suspicion also fell on Ben Chow, co-founder of the decentralized liquidity protocol Meteora. He is accused of insider trading and participation in the management of the Libra project, which led to his resignation.
Interest in Libra was fueled by statements by Miley, who spoke on the social network X about a "private project" that could contribute to the economic development of Argentina, as well as support small businesses and startups. However, after the collapse of the token and significant financial losses to investors, he distanced himself from the project, claiming that he had nothing to do with it. Miley noted that investors should be aware of the risks associated with investing in volatile assets.
Argentina's leader recently said Libra had no more than 5,000 users and that automated accounts may have been affected, calling into question the scale of the real losses.
