CZ Donates 150 BNB to LIBRA Scam Victims
Founder of Binance, Changpeng Zhao (CZ), has pledged 150 BNB, equivalent to approximately $100,000, in support of the victims of the LIBRA memecoin scam. He donated after a university student, EnHeng, offered $50,000 and started a fundraising campaign.
EnHeng’s Initiative Inspires CZ
One EnHeng, a college student who was significantly affected by the scam, shared their intentions on X, outlining their $50,000 contribution and creating a Binance Smart Chain (BSC) address for additional donations. They acknowledged the emotional and financial toll of such scams on young investors. The majority of the victims, particularly students, were left financially shattered by the unexpected and unforeseen losses.
CZ, who is well known for his philanthropic efforts in the crypto community, retweeted EnHeng’s tweet and contributed 150 BNB. In a later tweet, CZ clarified that he was touched by the student’s generosity and simply wished to follow in their footsteps. His gesture gave the relief efforts an enormous boost, as others in the crypto community were encouraged to give.
The LIBRA Memecoin Scam and Its Aftermath
The LIBRA memecoin scandal blew up following the endorsement by Argentine President Javier Milei, which caused the value of the cryptocurrency to surge. The price of the coin, however, tumbled shortly, resulting in enormous investor losses. It has been reported that more than 40,000 investors lost $4.4 billion. The collapse was sudden and resulted in chaos as most of the investors were not able to get back their money.
Legal and Political Consequences
Following the coin’s collapse, one of LIBRA’s main protagonists, Hayden Mark Davis, accused President Milei of “betrayal” and alleged that he permitted panic selling after withdrawing support. Argentine attorneys later accused Milei of “fraud,” “criminal association,” and “failure to fulfill public duties” for his involvement in the affair. The accusations have unleashed a wave of tighter cryptocurrency regulation in Argentina.
The scandal has fueled Argentina’s political situation, and opposition leaders have demanded the impeachment of Milei. His critics claim that his endorsement of LIBRA was a pump-and-dump scheme intended to manipulate the market for personal benefits. There have been protests in big cities, calling for accountability from government officials.
CZ’s actions are a nice positive twist in the ongoing crisis, providing financial relief to some of the victims of the scam. The cryptocurrency community has taken it well, with discussions on enhancing investor protections within decentralized finance (DeFi) gathering steam.
