Blockchain researchers have identified $99 million worth of cryptocurrency withdrawn from the liquidity pool of $LIBRA, the crypto token at the center of a growing scandal in Argentina.

The funds were pulled by eight digital wallets linked to the token's creator, according to blockchain analytics firm Chainalysis.

The controversy erupted after Argentinian President Javier Milei promoted $LIBRA in a post on X late Friday, only to delete it soon after and deny any connection to the cryptocurrency.

The coin’s price soared above $4.50 following Milei’s endorsement but plummeted within hours, prompting a federal investigation into its launch and Milei’s involvement.

Blockchain Analysis Links Wallets to Libra Creators

Chainalysis reported that the eight wallets withdrawing funds were directly linked to the Libra token’s creators but could not confirm the identities of their owners.

"The on-chain behavior suggests that these addresses are closely related to the Libra creator team based on the fact that those addresses were funded directly from the Libra token creator," Chainalysis told Reuters.

The firm did not specify when exactly the funds were withdrawn.

Meanwhile, another blockchain analytics firm, Nansen, revealed on Wednesday that wallets withdrawing tokens from Libra’s liquidity pool still hold approximately $87 million in digital assets.

"It is fair to say that there is still a lot of money in the hands of those related to the Libra launch," Nansen noted.

READ MORE: Argentina’s Milei accused of crypto fraud after $LIBRA crash

Political and Market Fallout

Meme coins, like $LIBRA, are often tied to internet trends and tend to experience rapid price swings, with early investors cashing out before their value collapses. While such tokens are common in the crypto space, political figures rarely endorse them.

Milei has accused his rivals of exploiting the situation for political gain, but the incident has sparked concerns over potential insider activity. The withdrawn tokens included USDC stablecoin and Solana (SOL), whose value fluctuates with market conditions.

The token was originally launched on the crypto exchange Meteora, which has not yet responded to requests for comment.

According to Nansen, between Sunday and Tuesday, 70% of wallets trading $LIBRA recorded losses, reflecting the volatility surrounding the token. As investigations continue, questions remain about who benefited from the withdrawals and whether regulatory action will follow.

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