Around $99 million worth of cryptocurrency was removed from the liquidity pool of the Libra ($LIBRA) token by eight digital wallets linked to the coin’s creator, according to blockchain analysis firm Chainalysis. The withdrawals occurred after Argentinian President Javier Milei endorsed the little-known crypto token in a now-deleted post on X.

Milei has distanced himself from the cryptocurrency, denying any involvement despite the coin’s price surging past $4.50 following his endorsement before crashing within hours. The rapid rise and fall of the token have led to a federal investigation into its launch and potential connections to Milei.

Chainalysis revealed that the wallets withdrawing the funds had received direct transactions from the Libra token’s creator. While the identities of the wallet owners remain unconfirmed, their on-chain behavior suggests close ties to the development team. The withdrawn funds included the stablecoin USDC and Solana (SOL), both of which have fluctuating dollar values.

Nansen, another blockchain analytics firm, reported that the wallets involved still hold approximately $87 million in assets. It remains unclear whether these funds will be reinvested or liquidated, but the company noted that significant amounts are still controlled by individuals linked to the Libra launch.

The $LIBRA token was initially launched on the crypto exchange Meteora, which has not yet commented on the situation. Between Sunday and Tuesday, Nansen reported that 70% of traders involved with $LIBRA suffered losses.

Amid growing scrutiny, Hayden Davis, who previously identified himself as a "launch advisor" for Libra, has also come under the spotlight. In a statement on X, Davis claimed control over $100 million in crypto from the token’s liquidity pool. He insisted that he had no intention of personally profiting from the funds and planned to reinvest them back into the project.

In an interview with crypto investigator Stephen Findeisen, also known as "Coffeezilla," Davis dismissed accusations of a "rug pull," a common scam in which developers abandon a project after inflating its value. Instead, he described the situation as a “plan gone miserably wrong,” admitting that he was the custodian of a massive sum of money.

Despite reassurances from Davis, the scandal has fueled concerns over the legitimacy of political endorsements in crypto markets. Meme coins, such as $LIBRA, are notorious for their volatility and speculative nature. While they often see rapid gains, they also pose a high risk of collapse when early investors cash out.

It is rare for politicians to be directly linked to such projects, though former U.S. President Donald Trump and his wife recently launched their own crypto token.

With investigations ongoing, the future of the $LIBRA token remains uncertain. The controversy underscores the risks of speculative crypto investments, particularly those intertwined with political figures.