Libra Token Crashes After $107 Million Insider Rug Pull
A cryptocurrency endorsed by Argentine President Javier Milei has collapsed after an alleged insider rug pull, wiping out nearly 94% of its value within hours.
The Libra (LIBRA) token initially surged to a market capitalisation of $4.56 billion at 10:30 pm UTC on 14 February. However, just 11 hours later, its value plummeted to $257 million. According to blockchain intelligence firm Lookonchain, at least eight wallets linked to the Libra team withdrew liquidity from the project, cashing out approximately $107 million.
“The $LIBRA team has cashed out $107M! 8 wallets related to the $LIBRA team have obtained 57.6M $USDC and 249,671 $SOL ($49.7M) by adding liquidity, removing liquidity and claiming fees,” Lookonchain reported.
President Milei had previously endorsed the project in a now-deleted social media post, describing it as a private initiative to stimulate Argentina’s economy. Following the token’s crash, he distanced himself from the project and accused political opponents of exploiting the situation.
NYSE Proposes Rule Change to Enable Ether Staking in ETFs
The New York Stock Exchange (NYSE) has filed a request with the US Securities and Exchange Commission (SEC) seeking approval to allow Ether (ETH) staking in Grayscale’s spot Ethereum exchange-traded funds (ETFs).
If granted, Grayscale would be permitted to stake ETH within its Ethereum Trust ETF (ETHE) and Ethereum Mini Trust ETF (ETH), according to the 14 February filing.
Grayscale stated that any staking rewards earned would be treated as fund income but emphasised that it would not guarantee returns for investors.
“The Sponsor’s staking activities on behalf of the Trust will not constitute ‘delegated staking’ and will not form part of a ‘staking as a service’ offering,” the filing clarified.
SEC Crypto Task Force Engages with Firms on Regulation
The SEC’s Crypto Task Force has been holding meetings with industry representatives to discuss regulatory concerns surrounding digital assets.
On 4 February, the task force met with the Blockchain Association, an industry advocacy group, to explore six priority areas impacting the crypto sector.
The following day, representatives from Jito Labs and Multicoin Capital discussed incorporating staking into exchange-traded products (ETPs), describing staking as an integral feature of proof-of-stake tokens.
Also on 5 February, Andreessen Horowitz’s capital management division met with the task force to discuss token classification, issuance, and market intermediaries.
On 6 February, Nasdaq representatives engaged with the SEC to seek clarity on regulatory frameworks for digital assets and to define the permissible venues for cryptocurrency trading.
As crypto regulation continues to evolve, the SEC’s engagements with stakeholders indicate a more structured approach to policymaking in the digital asset space.
