The Argentine Blockchain Foundation is offering assistance to those affected by the collapse of the Token LIBRA. This non-profit organization, dedicated to educational issues related to cryptocurrencies and their underlying technology, has announced the extension of its legal support program to help residents who have been harmed by the collapse.
The foundation will provide legal assistance and guidance to those affected, who can request information and support through email. In a statement, the organization indicated that it will outline the steps to follow for those who reach out.
One of the key factors that alerted potential investors about the possible scam was the express creation of the Token, which was generated minutes before its public announcement without evidence of prior development. Other red flags included the lack of utility, with the Token being presented as a utility coin without documentation to support its real use within a functional ecosystem. The concentration of tokens in a few wallets, with over 70% controlled by five addresses, also suggested market manipulation.
Additionally, the anonymity of the creators, the improvised website, and the lack of audits or technical documentation all raised suspicions about the legitimacy of the project. The promotion of the Token was also based on its association with Argentine President Javier Milei, without real technological foundations. The price handling of the Token, with artificial movements inflating its value before the collapse, and the lack of a roadmap and development plan, were also indicators of a possible scam.
The collapse of the Token LIBRA has had a significant impact on the crypto community, with thousands of investors trapped in what has been confirmed as a rugpull. The term rugpull refers to a scam in which the creators of an active crypto withdraw all available liquidity and disappear with the funds, leaving investors without the possibility of recovering their money.
The trigger for the speculative fever around LIBRA was its mention in the official account of Javier Milei on X, which has an audience of almost four million followers. The publication generated a domino effect of confidence in the Token, attracting a large number of buyers in a matter of hours. However, the collapse of the price and the lack of fundamentals of the project soon showed what many analysts had already warned: it was a scam.
After the collapse, President Milei faced strong pressures and criticism for his support of the project. In a recent interview, he claimed that he never intended to persuade people to buy LIBRA, since he only wanted to “run his voice” about a project that seemed designed to help Argentine companies. Milei also assured that few Argentines lost money and most token investors were “Chinese and Americans.”
Despite the clarification, the president now faces problems with local authorities. A judge in Argentina was selected to investigate the fraud complaints presented against the president, while a law firm in the country also requested the US Department of Justice and the FBI to investigate the case.
The most recent reports on the case indicate that the plot could have been more complex than initially suspected. The self-proclaimed advisor to LIBRA, Hayden Davis, said they would have bribed the sister of the Argentine president, Karina Milei, to achieve influence in favor of the social networks project, which is why the president would have shown his support on social networks.
It is essential to note that investments in crypto are not regulated in some countries and may not be appropriate for retail investors, as the total inverted amount could be lost. It is crucial to see your country’s laws before investing and to be cautious of potential scams, such as the one that occurred with the Token LIBRA.