Libra Memecoin Scandal: Investors Lose $251M as Insiders Cash Out

On-chain data has revealed the staggering losses suffered by investors in the recent Libra (LIBRA) memecoin pump-and-dump scheme , with total losses surpassing $251 million. According to blockchain research firm Nansen, out of 15,430 wallets that traded the token for a profit or loss exceeding $1,000, a shocking 86% sold at a loss.

Retail Traders Take the Biggest Hit in LIBRA Collapse

Meanwhile, only 2,101 wallets managed to exit with realized profits, collectively pocketing just $180 million—a fraction compared to the total losses. Analysts noted that the biggest winners appeared to be insiders who cashed out early, while unsuspecting retail investors were left bearing the brunt of the crash.

Nansen’s Feb. 19 report shed light on the distribution of losses, with 1,478 wallets losing between $1,000 and $10,000, totaling $4.8 million in damages. More than 2,800 wallets saw losses between $10,000 and $100,000, adding up to a massive $82.4 million. Meanwhile, 392 wallets suffered losses between $100,000 and $1 million, and 23 wallets lost over $1 million each, with combined losses amounting to $40.9 million.

Among the biggest losers was Barstool Sports founder Dave Portnoy, whose wallet registered a steepest realized loss of $6.3 million. Portnoy, who had initially received 6 million LIBRA tokens as payment for promoting the project, later returned them, claiming he wanted no involvement in the scandal.

Legal Battles and Political Fallout

As the dust settles, the fallout from the LIBRA debacle is far from over. Burwick Law, the firm leading lawsuits against Pump.fun and Hawk Tuah (HAWK) memecoin creators, has already begun gathering hundreds of claims from affected investors and is considering legal action.

“Our priority is advocating for those affected and helping them explore potential avenues for financial recovery,” the law firm stated on Feb. 17.

The key figures behind the LIBRA launch—Kelsier Ventures CEO Hayden Davis and KIP Protocol CEO Julian Peh—have come under intense scrutiny. Davis, who was allegedly one of the biggest beneficiaries, has denied directly owning or selling any LIBRA tokens, despite claims that he and his firm profited around $100 million from the token’s launch.

Meanwhile, Argentine President Javier Milei, whose brief endorsement of LIBRA on X helped trigger the pump, has attempted to distance himself from the controversy. While he insists he did not “promote” the LIBRA token , legal troubles are mounting, with fraud lawsuits naming him as a defendant. Local media outlet La Nacion has even reported that Milei’s sister, Karina Milei, may have been involved in behind-the-scenes dealings with Davis, though Davis has denied sending messages linking her to the project.