A major scandal has unfolded around the LIBRA cryptocurrency, a token promoted by Argentine President Javier Milei. Investigations have revealed that Hayden Davis, a key advisor to Milei and the co-founder of Kelsier Ventures, owns a network of over 1,000 wallets containing close to $300 million in assets. These holdings, which include LIBRA, SOL, USDC, and other digital tokens, are now under intense scrutiny as Davis and his company are implicated in a potential “rug pull” scam that has cost investors millions.

The LIBRA Token and Its Ties to Milei

LIBRA was launched on the Solana blockchain and quickly gained attention due to its backing by Milei. However, the token’s sudden rise has been marred by allegations of fraud. Hayden Davis and Kelsier Ventures were among the four co-founders behind the token, but their involvement has taken a dark turn as investigations have linked them to a widespread crypto scam.

Hayden Davis’ Massive Holdings

According to data from Arkham, Davis’s wallet addresses hold significant amounts of various assets. His Kelsier Ventures company, specifically, holds nearly $11 million in a mix of assets, including USDC, SOL, and several “meme coins” like RYAN. However, the bulk of Davis’s wealth is tied up in wallets connected to the LIBRA token, with holdings valued at almost $255 million.

These wallets, controlled by Kelsier Ventures, are dominated by LIBRA tokens but also include significant amounts of SOL, USDC, and other meme coins. Altogether, Davis’s total holdings across all his wallets amount to nearly $266 million.

The Fallout from the LIBRA Scandal

The LIBRA case has caused a ripple effect throughout the cryptocurrency world, especially within the Solana ecosystem, where the token was launched. According to reports, the scandal has led to losses of around $286 million, making it one of the largest crypto-related crises in recent months.

Davis has claimed that a portion of his holdings—around $100 million—are under his custody but not technically his property. He says he is awaiting instructions on how to use the funds to resolve the situation surrounding LIBRA. However, this has done little to quell the concerns of investors who fear that their funds may be lost forever.

A Web of Fraud and Corruption

The controversy surrounding LIBRA is compounded by accusations of a broader fraud network within the Solana community. On February 17, the creator of DeFiTuna, another major DeFi project on Solana, exposed a network of influencers who allegedly profited from a fraudulent token extraction scheme. The system said to involve the leadership of the Meteora exchange and figures within Kelsier Ventures, is believed to have siphoned off over $200 million in tokens.

The scandal has severely tarnished the reputation of Solana, with accusations that powerful individuals and organizations, including Davis’s Kelsier Ventures, were involved in orchestrating the fraud. Ben Chow, the former leader of Meteora, resigned after the allegations surfaced, further exposing the depth of the controversy.

The Road Ahead

The investigation into Davis and Kelsier Ventures continues, with many questions still left unanswered about the ownership and control of the assets in question. Investors and industry insiders are awaiting further clarification on whether the funds can be recovered or if they will be lost to the alleged fraud.

As this scandal unfolds, it serves as a stark reminder of the risks associated with the unregulated world of cryptocurrencies, where scams and fraud are all too common. The LIBRA case is likely to have long-lasting consequences for the reputation of the Solana blockchain and the broader crypto industry.

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