LIBRA Memecoin Scandal Leads to Resignation of Meteora Co-Founder Ben Chow

Allegations of Insider Trading and Misconduct

Ben Chow, co-founder of the Solana-based decentralized exchange Meteora, has stepped down following allegations of privately receiving or managing LIBRA tokens. The resignation was announced by Meow, pseudonymous co-founder of both Meteora and Jupiter, on X.

Meow emphasized the companies’ commitment to transparency and assured the community that neither project was involved in insider trading or financial misconduct. An independent investigation into the claims has been launched by Fenwick & West, a reputable law firm. The results of the investigation will be made public.

Background and Circumstances of the Resignation

Meteora has operated independently from Jupiter for over a year, with Chow leading the project without significant involvement from Meow. Despite expressing confidence in Chow’s character, Meow cited a lack of judgment in recent months regarding Meteora’s core operations as a reason for the resignation.

The LIBRA Memecoin Scandal

The LIBRA memecoin gained rapid attention after Argentine President Javier Milei publicly mentioned the token. The value of LIBRA surged to over $4 before plummeting to less than 50 cents. Rumors of market manipulation were sparked by reports that insiders cashed out over $100 million while buyers incurred large losses.

‘This isn’t some random f*cking scam.’

Hayden Mark Davis, the mastermind behind the crashed Libra crypto scam, has been at the center of controversy. The incident has sent shockwaves through the crypto space, highlighting the risks involved in memecoin trading.

Aftermath and Repercussions

Milei’s involvement with the token has ignited political tensions in Argentina, with opposition leaders calling for his resignation. The nation’s Anti-Corruption Office is reviewing the case, and Federal Judge María Servini is overseeing a legal probe into the matter.

Binance co-founder Chang Peng Zhao has offered to donate 150 Binance Coin (BNB) as part of an effort to compensate victims of the scam.

Some key takeaways from the LIBRA memecoin scandal include:

  • Market manipulation risks: The incident highlights the risks involved in memecoin trading and the potential for market manipulation.
  • Importance of transparency: The scandal emphasizes the need for transparency and accountability in the crypto space.
  • Regulatory scrutiny: The incident may lead to increased regulatory scrutiny of the crypto market and memecoin trading.

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