Libra Token Crashes After $107M Insider Rug Pull

A cryptocurrency linked to Argentine President Javier Milei has collapsed following an alleged insider rug pull, wiping out 94% of its value within hours.

Libra (LIBRA) initially surged to a market capitalisation of $4.56 billion on 14 February before plummeting to $257 million just 11 hours later. According to blockchain analytics firm Lookonchain, eight wallets associated with the project’s team drained liquidity, cashing out approximately $107 million.

“The $LIBRA team has cashed out $107M! Eight wallets linked to the team have obtained 57.6M USDC and 249,671 SOL ($49.7M) through liquidity manipulation,” Lookonchain reported.

President Milei had previously endorsed the token in a now-deleted social media post, calling it a private initiative aimed at bolstering Argentina’s economy. Following the token’s collapse, he removed his endorsement and accused political opponents of exploiting the situation.

NYSE Seeks Approval for Ether Staking in Grayscale ETFs

The New York Stock Exchange (NYSE) has submitted a proposal to the US Securities and Exchange Commission (SEC) to allow Ether (ETH) staking in Grayscale’s spot Ethereum exchange-traded funds (ETFs).

If approved, Grayscale would be permitted to stake ETH within its Ethereum Trust ETF (ETHE) and Ethereum Mini Trust ETF (ETH), as outlined in the 14 February filing.

Grayscale clarified that any staking rewards earned would be treated as fund income but 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 stated.

SEC Crypto Task Force Engages with Industry Leaders

The SEC’s Crypto Task Force has been actively meeting with representatives from both the cryptocurrency and traditional finance sectors to discuss key regulatory matters.

On 4 February, the task force met with the Blockchain Association, an industry lobby group, to outline six priority areas impacting the crypto sector.

On 5 February, representatives from Jito Labs and Multicoin Capital discussed the integration of staking into exchange-traded products (ETPs), arguing that staking is central to proof-of-stake tokens.

Later that day, the task force engaged with Andreessen Horowitz’s capital management group to discuss token classification, issuance procedures, and market intermediaries.

On 6 February, Nasdaq representatives sought regulatory clarity on digital assets and the venues permitted to trade cryptocurrencies.

The SEC’s recent engagements signal a continued focus on developing clear regulatory frameworks for the evolving digital asset space.