Argentina’s President Javier Milei faces impeachment calls after promoting the LIBRA cryptocurrency, which crashed, resulting in significant financial losses for investors. Concurrently, Bybit, a crypto exchange, suffered the largest theft in history, losing $1.5 billion to hackers. Both incidents highlight the high risks and volatility inherent in the cryptocurrency market.
Argentina’s President Javier Milei faces significant backlash following a controversial promotion of the LIBRA cryptocurrency, which he claimed would stimulate the economy. His February 14 post on the platform X led to a surge in interest, causing LIBRA’s value to spike to nearly $5 before plummeting under $1 hours later. The fallout included over 100 fraud complaints from opposition lawyers and an official investigation led by a judge.
The situation escalated as crypto entrepreneur Hayden Davis acknowledged his involvement in the LIBRA launch and described a controversial practice called sniping, where insiders buy tokens at low prices before public access, creating a demand spike. Davis, who reportedly profited around $100 million from LIBRA, later distanced himself from the negative implications, asserting that he did not benefit personally from the project.
Statistics reveal that an overwhelming 86% of traders who invested in LIBRA incurred losses, totaling an estimated $251 million. Meanwhile, Ben Chow, cofounder of Meteora, the decentralized exchange that facilitated LIBRA’s launch, resigned amidst the chaos. The scandal particularly highlights the volatility and risks associated with new cryptocurrency ventures.
In a separate but equally impactful incident, the Dubai-based crypto exchange Bybit experienced the largest theft in crypto history, losing $1.5 billion in assets due to a targeted hack. Analysts suggest North Korean hackers are responsible for this breach, with assets predominantly being ether swiftly transferred through various wallets. Despite this setback, Bybit’s CEO reassured customers of the exchange’s financial stability.
The recent events surrounding Argentina’s LIBRA cryptocurrency promotion illustrate the volatile nature of the crypto market and the consequences of regulatory gaps. President Javier Milei’s promotion of LIBRA has led to severe reputational and financial ramifications, resulting in multiple legal challenges. Concurrently, the Bybit exchange’s major security breach emphasizes the ongoing threat of cybercrime in the digital asset sector. These incidents serve as crucial reminders for investors to thoroughly assess associated risks.
Original Source: www.forbes.com
