Argentine President Javier Milei is in hot water after his brief foray into crypto left the opposition calling for his impeachment and a judge launching a fraud probe. On February 14, Milei took to X to promote a little-known token called LIBRA, claiming it would boost Argentina’s economy by funding small businesses. His post linked to a website featuring his signature slogan, “long live freedom,” and assured his 3.8 million followers that “the world wants to invest in Argentina.” Thousands did. LIBRA skyrocketed from near zero to almost $5—before crashing to under $1 within hours.

Milei quickly deleted the post, claiming he was unaware of the project’s details, but the damage was done. Lawyers in Argentina, led by Milei’s political opponent Claudio Lozano, filed more than 100 fraud complaints against the president, and an Argentine judge opened up an investigation.

Crypto entrepreneur Hayden Davis admitted to participating in the launch of LIBRA—as well as MELANIA, a memecoin tied to the First Lady that briefly hit a $2 billion market cap before crashing. In an interview with YouTube scam-buster Coffeezilla (Stephen Findeisen), Davis revealed he controlled about $100 million made on LIBRA and detailed a scheme known as sniping—a practice where insiders or bots swiftly buy up newly launched tokens at ultra-low prices before the general public can react, driving up demand and price, only to sell at a massive profit. In regulated markets, this would be considered illegal front-running. He also named two organizers of Tech Forum, a Latin American tech conference, as fellow participants in the launch.

As the backlash mounted, Davis attempted damage control. “I want to make it unequivocally clear that I have not, nor will I, take any of these funds for my personal benefit,” he wrote in a statement on X. In a separate interview with Barstool Sports, he described the fiasco as an “experiment that happened to go very wrong.” He insisted Milei wasn’t corrupt—just surrounded by people who might be. Meanwhile, Barstool Sports’ Dave Portnoy claimed Davis personally refunded him $5 million lost in the LIBRA fiasco.

The numbers paint a brutal picture: 86% of traders who bought into LIBRA lost money, with total losses reaching $251 million, according to blockchain analytics firm Nansen. A lucky few pocketed $180 million.

Ben Chow, cofounder of the decentralized exchange Meteora, which facilitated the launches of LIBRA, MELANIA, and TRUMP, resigned, according to a February 18 post from his pseudonymous cofounder Meow.

This incident serves as a stark reminder of the risks associated with unregulated cryptocurrencies and the potential for fraud in the crypto market. In the U.S., similar incidents have highlighted the need for stricter regulations and oversight. For instance, the collapse of FTX in 2022 underscored the dangers of unregulated crypto exchanges and the potential for massive financial losses.

In another major crypto news, Bybit, a Dubai-based crypto exchange, lost $1.5 billion in digital assets after hackers gained control of one of its cold wallets, offline storage systems, on Friday. Blockchain analysts point to North Korean hackers, the usual culprits behind some of the industry’s biggest breaches. The stolen funds, mostly ether, were swiftly transferred across multiple wallets and platforms. Despite the blow, Bybit CEO Ben Zhou assured customers that the exchange remains solvent, claiming all client assets are fully backed and the company can cover the loss.

As crypto goes mainstream, a new wave of firms is reshaping finance—and Forbes’ Fintech 50 highlights the biggest players leading the charge. From tokenizing real-world assets to securing institutional capital, these blockchain innovators are driving a financial shift once dismissed as speculative hype. As the crypto market continues to evolve, it is crucial for regulators and investors alike to stay informed and vigilant.

In the U.S., the Securities and Exchange Commission (SEC) has been increasingly scrutinizing crypto firms. Recently, Coinbase announced that the SEC would drop a lawsuit against the company, marking a significant development in the ongoing regulatory battles. This move could set a precedent for how the SEC handles future crypto-related cases, potentially influencing the broader market.

Some crypto traders caught in the FTX collapse are about to get paid back, according to a report by The Wall Street Journal. This development provides a glimmer of hope for those affected by the collapse, highlighting the importance of regulatory oversight and investor protection in the crypto market.

Figure, a financial services company, has gained SEC approval for its first interest-bearing stablecoin launch, marking a significant milestone in the stablecoin market. This approval could pave the way for more regulated and secure stablecoins, benefiting both investors and the broader financial ecosystem.

In conclusion, the Argentine crypto fiasco serves as a cautionary tale for the U.S. market, highlighting the need for stricter regulations and oversight. As the crypto market continues to evolve, it is crucial for regulators, investors, and industry players to stay informed and vigilant, ensuring a more secure and transparent financial landscape for all.