Nice to see repercussions for Rug Pulls (Patreon)

Anatomy of a Rug Pull

LIBRA memecoin rug pull scandal summary:

Step 1 Launch and Hype - Libra, a memecoin on Solana, launched in February 2025. Promoted as a government-backed project, especially after Argentine President Javier Milei endorsed it. The coin quickly hit a $4.5 billion market cap. That is a ton of money!

Step 2 Insider Dump - Hayden Davis (Kelsier Ventures) admitted to buying early using insider info. He made over $100 million as insiders dumped tokens, causing a 97% crash.

Step 3. Influencer Manipulation - Influencers were paid in Libra tokens to post positive content without disclosure. This misled retail investors into believing in the project’s legitimacy.

Step 4 Political Corruption: Milei is accused of false promotion and accepting bribes via his sister. Davis allegedly claimed he had control over Milei’s actions through payments. Calls for Milei’s impeachment followed. Still not sure if Milei was just tricked/hacked which is my guess!

Step 5. Meteora and Ben Chow - Ben Chow helped launch Libra on Meteora’s M3M3 platform. Leaked messages tied him to a broader $200M memecoin extraction scheme. He resigned but denied direct involvement in Libra’s fraud.

Step 6. Ongoing Laundering Authorities allege Libra insiders continued laundering through small memecoins. Nearly $100 million in crypto has been frozen.

REPURCUSSIONS

Investors suffered major losses; lawsuits were filed. Circle froze $57.65 million in USDC under a court order. A key court hearing is scheduled for June 9, 2025.

Hope this case cleans up the bad actors... but rem there are still a ton of them out there.