Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Stablecoins, Metaverse, NFTs
Join NCFA at Consensus 2025 Toronto May 14-16
Consensus 2025 Toronto | Feb 28, 2025
Consensus 2025 Toronto
The Premier Web3 & Blockchain Event!
📅 May 14-16, 2025
📍 Downtown Toronto, Canada
NCFA Canada is proud to be an official community partner of Consensus 2025 Toronto, the most influential conference for blockchain, crypto, and Web3! As a partner, we’re thrilled to offer our community an exclusive 15% discount on tickets.
Why Attend?
- Connect with top industry leaders, investors, and innovators
- Explore groundbreaking advancements in blockchain, AI, and fintech
- Participate in exclusive side events, networking, and expert panels
- Discover game-changing startups at CoinDesk PitchFest
- Hack, build, and pitch at the EasyA Consensus Hackathon
Registration
- Pro Pass: $700 USD (Save $250) – Access to all stages, exhibition floor, networking app, and more.
- Platinum Pass: $1,400 USD (Save $350) – Includes all Pro Pass benefits plus exclusive access to the Executive Lounge, private meeting rooms, and VIP events.
- Startup Package: $700 USD (Save $250) – Special 3-for-1 Pro Pass bundle for startups.
Prices increase on March 14 at 4 p.m. ET. Secure your spot today!
Exclusive NCFA Discount
- Register now: go.coindesk.com/NCFA
- Use promo code: NCFACANADA15 at checkout for 15% off!
See: Investing in the Future of AI and Blockchain
Don't miss this opportunity to be part of the most influential event in the crypto and Web3 space. Join us in Toronto and be a part of the future of decentralized technologies. Stay tuned for updates and join the conversation using @consensus2025 #Consensus2025 #ConsensusTO
See you there!
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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SEC Policy Reversals and Crypto Case Dismissals
SEC | Feb 25, 2025
Image: Freepik/jcomp
The SEC’s New Direction Under the Trump Administration
Since President Trump took office for the second term, the U.S. Securities and Exchange Commission (SEC) is undergoing major transformation. Not a week passes without key changes being announced from cost cutting to reversing key regulations away from policies set by the previous administration.
See: Trump Shuts CFPB Weakening Consumer Financial Protections
This changes impact corporate disclosures, shareholder rights, market regulations, and the SEC’s new approach to cryptocurrency to name a few. Here's a quick run-down to stay plugged in with what's going on.
Budget Cuts and Structural Changes
The SEC overseas $100 trillion U.S. capital markets and is getting their budgets slashed according to the Reuters exclusive, including the just announced removal of regional directors from ten offices. While the offices themselves remain open, the restructuring aims to centralize decision making to reduce overhead. For example, the Trump administration has ordered independent agencies like the SEC to submit draft regulations, strategic plans, and budget requests to the White House for review, increasing executive oversight over regulatory actions.
Leadership Changes
While NCFA already reported on the changes below, it's worth reiterating the following key leadership changes at the SEC:
- Paul Atkins nominated as SEC Chair - he was a former SEC commissioner and advocate for deregulation and currently awaits confirmation by the Senate.
- Mark Uyeda as Acting Chairman. He currently leads the SEC while Atkin's nomination is awaiting approval.
- Hester Peirce leads the Crypto task force - affectionately known as 'Crypto Mom' and for her pro-crypto views, is spearheading SEC efforts to create a clear regulatory framework for digital assets, which ill replace prior enforcement driven approaches.
Key Regulatory Rollbacks
1. Climate Disclosure Rule Rescinded
The SEC is no longer supporting the climate disclosure rule that required companies to disclose their greenhouse gas emissions. Acting Chair Uyeda questioned whether the SEC had the legal power to enforce this rule, signaling a move away from climate-related financial reporting. (Source)
2. Shareholder Proposal Restrictions Reinstated
Companies now have more power to reject shareholder requests, especially those about environmental, social, and governance (ESG) topics. This change rolls back previous rules that gave shareholders more say in company decisions.
3. Treasury Market Dealer Rule Withdrawn
A rule that required certain traders in the U.S. Treasury market to register as broker-dealers has been cancelled. This happened after legal challenges claimed the SEC had gone beyond its authority.
4. Crypto Custody Accounting Rule Reversed
The SEC has rescinded its prior guidance requiring crypto custodians to record digital asset liabilities on their balance sheets, reducing financial burdens for institutions handling cryptocurrency.
5. Increased Oversight of SEC Investigations
SEC staff must now obtain leadership approval before launching formal investigations, centralizing enforcement decisions and potentially slowing new probes.
New Approach to Crypto Regulation
The SEC has cancelled or dropped several high profile cases established during the prior administration, reflecting a dramatic shift in crypto regulations moving forward:
- The SEC has dropped its investigation into Robinhood’s crypto operations with no enforcement action. (see wells notice)
- Paul Grewal, Coinbase's chief legal officer said federal regulators/SEC will drop its lawsuit against Coinbase, which had accused the exchange of operating without proper registration.
- The SEC has also closed its investigation into OpenSea’s NFT marketplace.
- The SEC has concluded its investigation into Uniswap Labs with no enforcement action, providing a positive signal for DeFi platforms.
- The SEC and Binance have requested a 60-day pause in their legal battle, signalling potential negotiations for a settlement or case dismissal.
- Ripple CEO Brad Garlinghouse believes the SEC will drop its case against Ripple Labs. He pointed to the SEC’s recent shift in approach and the dismissal of other cases as positive signs. Further, the SEC has also recently removed any mention of the Ripple lawsuit from its website, suggesting the case could soon be resolved
- The SEC has agreed in principle to drop all pending securities charges against ConsenSys
Outlook
With fewer enforcement actions, reduced oversight, and a more favourable stance on crypto, the U.S. financial industry is entering a new phase. While these moves could encourage innovation and investment, they also raise concerns about market integrity and investor protection. Time will tell if these changes bring stability and growth or create new risks for the industry.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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North Korea Linked to $1.4B Bybit Hack, Rapid Recovery
Crypto | Feb 24, 2025
Image: Freepik/rawpixel.com
North Korea’s Lazarus Group Behind Monstrous $1.4B Bybit Hack
On February 21, 2025, Dubai-based Bybit, the second largest cryptocurrency exchange globally, suffered a staggering hack of $1.4 billion of Ethereum in one of the largest crypto heists to date. Credit to Bybit for their swift response within 72 hours, Bybit successfully restored its reserves to a 1:1 ratio, ensuring full backing of all customer assets. A fresh independent audit from cybersecurity firm Hacken confirmed the reserves, demonstrating Bybit’s resilience and strong industry partnerships is reassuring investors during this crisis.
See: Canadian Hacker Indicted in $65M DeFi Heist
Blockchain forensics firm Arkham Intelligence traced the exploit back to North Korea’s Lazarus Group, a well known cybercriminal organization tied to numerous crypto heists. Investigators linked this latest attack to Lazarus through a series of wallet addresses connected to prior hacks. High profile blockchain analyst ZachXBT contributed key insights that mapped the movement of stolen funds and identified suspicious test transactions leading up to the breach. According to Chainalysis, the Lazarus Group was responsible for 61% of all stolen crypto in 2024 (over $1.3 billion in digital assets).
What Happened?
Hackers took advantage of a weakness in Bybit’s system during a routine transfer of funds from its offline "cold wallet" to its online "warm wallet" for transactions. They intercepted the process and redirected approx 401,000 Ethereum to an unknown address. Bybit later explained that the attack was highly advanced that used deceptive techniques to manipulate the transactions approval system which made the fraudulent withdrawals seem legitimate. Some experts believe phishing tactics may have been involved.
Bybit’s Response
Ben Zhou, Bybit's CEO quickly reassured users that all funds remain secure and that the exchange has enough reserves to absorb the loss. He stressed that customer assets are backed 1:1 and announced an aggressive $140 million bounty for anyone who can help recover the stolen funds. Arkham Intelligence had already placed a $30,000 reward on identifying the perpetrators, which helped lead to the Lazarus connection.
Bybit was able to replenish its reserves in record time through strategic partnerships with crypto firms like Galaxy Digital, FalconX, and Wintermute, along with support from Bitget, MEXC and DWF Labs.
See: Milei Faces Political Crisis After $LIBRA Crypto Collapse
The exchange completed a fresh audit just yesterday February 23, 2025, led by an independent third-party cybersecurity firm Hacken who confirmed that Bybit successfully restored reserves to a 1:1 ratio within 72 hours of the attack indicating that the exchange has sufficient reserves to fully back all users. The audit covered 40 different asset types and key holdings such as BTC, ETH, SOL, USDT, and USDC.
Ben Zhou, Co-founder and CEO of Bybit:
"Bybit fully backs all customer assets entrusted to our platform, maintaining a dynamic ratio of over 1:1. We are fortunate to have all-weather friends in a cut-throat industry—our peers and even competitors stood with us during challenging times, and our customers deserve the same level of commitment".
What Happens Next?
Bybit is strengthening its security protocols and working with international law enforcement to track the stolen funds. However, recovering stolen digital assets from North Korean hackers is notoriously difficult because, unlike other hacking groups, Lazarus operates under a government that has no incentive to cooperate with global authorities. This reality is the stolen $1.4 billion of Ethereum will likely be laundered and channelled into funding North Korean activities unless it can be recovered.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Crypto Meets Wall Street as SEC Approves Yield Stablecoin
Stablecoin Regulation | Feb 21, 2025
Image: Freepik/nikitabuida
SEC Greenlights First Interest Paying Stablecoin, Disrupting Banks and Crypto
As reported by Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has approved the first yield-bearing stablecoin YLDS issued by Figure Markets. Per its filing document, this stablecoin is pegged to the U.S. dollar and offers holders an annual percentage yield (APY) of 3.85%.
See: Paxos International Launches Yield-Bearing USDL Stablecoin (Abu Dabi)
This approval shows the SEC's willingness to progress and regulate the stablecoin market and foreshadows the growing integration between traditional finance and blockchain technology, giving users the ability to earn interest on digital holdings without relying on external platforms. This development could significantly impact how people manage and invest their money, affecting banks, crypto lending platforms, and even government legislation.
YLDS Overview
- YLDS generates interest by providing an APY of 3.85%, which is calculated by the Secured Overnight Financing Rate (SOFR) minus 0.50%. Interest accrues daily and is paid monthly in U.S. dollars or additional YLDS tokens. Tradable 24/7 on Figure Markets with fiat conversions available during U.S. banking hours.
- YLDS is registered as a security with the SEC and is compliant with U.S. financial regulations.
- YLDS stablecoin is backed by assets similar to those held in prime money market funds including U.S. Treasury bonds and corporate debt (stable and reliable).
- YLDS runs on the Provenance Blockchain, allowing people to send money directly to each other without middlemen. This makes transactions faster, easier, and ideal for payments or sending money across borders.
How Interest Paying Stablecoins Could Disrupt Finance
- Today, banks rely on customer deposits to fund loans. If people everyday citizens move their savings to yield-bearing stablecoins which offers more competitive interest rates than traditional bank, banks could lose access to these funds, forcing them to raise interest rates or create new products to stay competitive.
- Current stablecoins like popular USDT and USDC don’t generate yields, but YLDS changes that. If investors jump to stablecoins that pay interest, it could force other stablecoin issuers to follow suit or risk losing market share.
See: Hester Peirce’s Crypto Taskforce Roadmap: What’s Next for Regulation?
- Some large financial firms and investment funds have been hesitant to enter crypto due to volatility and regulatory uncertainty. But now with a stable, interest bearing digital asset that is SEC approved, it'll be safer for institutions to participate and may accelerate mainstream adoption.
- DeFi lending platforms like Ledn, Aave, and Compound rely on user deposits to function. If investors can earn passive income from a regulated stablecoins, they may be less likely to use DeFi lending pools which would force lending platforms to innovate or adapt.
- The SEC’s approval of YLDS sets a legal precedent for treating yield paying stablecoins as securities. This could influence how similar digital assets are taxed, regulated, and reported in the U.S. and internationally, resulting in potentially new compliance requirements for investors.
Outlook
As more investors explore secure, yield-generating digital assets, the lines between blockchain and traditional banking will continue to blur. Stablecoins will never be the same again now that the genie is out of the bottle. Whether this sparks more regulation or greater financial freedom remains to be seen.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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The Top Trends from Forbes’ 2025 Fintech 50 List
Fintech Ranking | Feb 20, 2025
Image: 2025 Forbes Fintech 50 (Illustration by Óscar Raña for Forbes)
What We Can Learn from the Forbes Fintech 50 in 2025
Every year, Forbes publishes their annual ranking of the top Fintech companies. Checkout the Forbes Fintech 50 in 2025, showing fintech companies that continue to grow despite pressure on company valuations and a slowdown in investment in the sector. According to the judges who select and rank the top 50 at Forbes, this year there's been a rise of business-t0-business fintechs, as well as the increasing importance of fraud prevention and financial security companies.
| Category | Total Funding ($M) | # Companies |
| Payments | 4482 | 11 |
| Personal Finance | 3812 | 8 |
| Business to Business Banking | 3794 | 11 |
| Wall Street and Enterprise | 1892 | 9 |
| Insurance | 1742 | 4 |
| Blockchain and Cryptocurrencies | 1670 | 3 |
| Real Estate | 508 | 2 |
| Investing | 265 | 2 |
1. B2B Fintechs Strong Showing
More than half of the companies on the list provide fintech services to other businesses rather than consumers. Categories like Payments and B2B Banking are seeing strong growth as businesses turn to fintechs to automate and improve their operations, reduce costs and streamline regulatory challenges. Fintech goes well beyond innovative consumer digital banking, it's morphing into improving financial systems at scale. Wall Street & Enterprise fintechs are also playing an outsized role in modernizing financial infrastructure at the institutional level.
See: 10 Fintech and Crypto IPOs 2025 – Boom or Bubble?
The chart below illustrates the number of fintech companies in each category, emphasizing the dominance of business-focused fintechs:
Image: Total # of Fintech Companies by Category (Forbes Fintech 50, 2025)
The chart below shows the total funding received by fintech category, showing which categories are bucking the trend despite the downturn.
Total Funding by Fintech Category Forbes Fintech 50, 2025
Payments fintechs still lead the pack with over $4.4 billion in total funding. This aligns with their critical role in powering e-commerce and digital transactions worldwide.
2. Focus on Profitability Amidst a Funding Slump
In the early 2020s, fintech companies focused on rapid growth but times have changed and they are now after profitability and sustained growth. This year, 13 companies on the list reported official profits (up from just eight last year). Investors and businesses alike are prioritizing financial health over unchecked expansion.
See: CIX 2025 Fintech and AI Startup Award Winners
Even though global fintech funding fell from $144 billion in 2021 to $34 billion in 2024, most companies on this year’s Forbes Fintech 50 have shown resilience. Major players like Stripe and Ramp have adapted by pivoting, reducing costs while focusing on efficiency.
3. Fraud Prevention and Security Are More Important Than Ever
As digital transactions increase so do fraud risks. Security based fintechs are gaining traction as businesses need stronger protections against cyber threats and fraud. DataVisor, a company that uses advanced machine learning to detect fraudulent transactions experienced a 67% increase in revenue in 2024, reaching $50 million.
4. Lending Fintechs Comeback
Companies like Arc, Aven, and Imprint have made their way onto this year’s list, showing that the lending market is regaining investor confidence. Nova Credit, for example, previously fell off the list but re-emerged this year with a renewed focus on cash flow underwriting and a fresh approach to risk assessment.
5. One Canadian Contender, Relay
While much can be argued about the methodology of actually being selected for the Forbes Fintech 50 list. To be honest there are several significant Canadian fintechs that should be on the list but aren't for whatever reason, such as Wealthsimple. But Relay made it so something to cheer about.
See: Key Findings from 2025 Advanced Payments and Fintech Survey
They are a Toronto-based digital banking platform for small businesses and provide financial management tools that integrate with accounting software, making it easier for businesses to manage their money. In 2024, they raised $32.2 million in a Series B funding round, strengthening their market position and offerings.
Top Fintech Companies by Category
Here’s a closer look at a couple of standout fintech firms within each category:
Payments
- Stripe – A global online payments leader providing seamless transaction infrastructure for businesses
- DailyPay – Helps employees access earned wages before payday, improving financial flexibility for millions
Business-to-Business (B2B) Banking
- Relay – Canada’s only fintech on the list offering digital banking for small businesses
- Parafin – Uses marketplace data to underwrite loans, achieved 100% revenue growth in 2024
Wall Street & Enterprise
- DataVisor – Specializes in AI powered fraud detection, growing revenues by 67% in the past year
- Alloy – Provides identity verification solutions for financial institutions, automating compliance and security processes
Personal Finance
- True Link – Offers financial services for vulnerable populations including the elderly and those with disabilities
- Chime – A digital bank providing fee-free accounts and early direct deposits
Insurance
- Ethos – Makes life insurance more accessible with a fast, tech-driven application process
- At-Bay – A cyber insurance company that proactively monitors digital risks for clients
Blockchain & Cryptocurrencies
- Figure – Uses blockchain to offer home equity lines of credit and mortgage refinancing
- Fireblocks – Provides secure infrastructure for handling digital assets
Real Estate
- Aven – Introduces innovative financing solutions to make real estate investments more accessible
- Valon – A mortgage service provider making home loan management simpler and more transparent
Why This Matters
The 2025 Forbes Fintech 50 shows the race for scale is now about profitability with payments, security, infrastructure, and B2B services leading the way. For Canada, Relay’s presence on the list is promising but begs the question, why aren’t more Canadian fintechs on the list?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Yellow Network Ranks Among Top 10 Apps by Total Active Accounts, According to BundleBear
Feb 20, 2025
Yellow Network has once again solidified its position as a key player in the decentralized trading ecosystem, earning a spot among the top 10 applications by total active accounts, as reported by BundleBear. This achievement highlights Yellow’s growing influence in the blockchain space and its commitment to building a cutting-edge Layer-3 peer-to-peer (P2P) trading protocol.
What is Yellow Network?
Yellow Network is a Layer-3 P2P protocol that leverages state channels to facilitate fast, efficient, and secure trading and settlement. It operates as a smart clearing network, allowing brokers to synchronize margins, hedge risks, and enable trustless trading without the need for centralized intermediaries. It provides an innovative infrastructure for high-frequency trading, cross-exchange liquidity, and decentralized order book management.
BundleBear’s Recognition: A Testament to Growth
BundleBear, a widely recognized blockchain analytics platform, tracks various metrics across decentralized applications (dApps) to determine their adoption and user engagement. By ranking among the top 10 applications by total active accounts, Yellow Network showcases its rising popularity and the strong demand for decentralized trading solutions.
See: Bitcoin’s Evolving: The Rise of DeFi on Bitcoin
This milestone underscores the platform’s ability to attract and retain active participants in an industry where user engagement is a key indicator of success. With a constantly growing network of brokers and traders, Yellow is proving to be a crucial element in the evolution of decentralized finance (DeFi).
Why Yellow is Gaining Momentum
- Scalability & Speed – As a Layer-3 solution, Yellow Network enhances transaction speed and efficiency by utilizing state channels, minimizing on-chain congestion and fees.
- Decentralization & Security – By eliminating centralized intermediaries, Yellow empowers users with trustless and secure trading mechanisms.
- Liquidity Optimization – The protocol connects brokers into a decentralized P2P network, enabling efficient liquidity distribution across multiple venues.
- Institutional-Grade Trading Infrastructure – Yellow’s framework allows brokers to manage positions, synchronize prices, and hedge risks without relying on centralized market makers.
What’s Next for Yellow?
With its ranking among the top 10 applications by total active accounts, Yellow Network is poised for further expansion. The platform continues to enhance its protocol, integrate with new partners, and optimize trading efficiency for a seamless user experience. As decentralized trading gains traction, Yellow Network is well-positioned to lead the charge toward a more open and efficient
Join the Yellow community to keep up with the latest developments and be part of the future of P2P finance.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Milei Faces Political Crisis After $LIBRA Crypto Collapse
Crypto | Feb 18, 2025
Image: Freepik/natanaelginting
Political Turmoil as Argentina's Presidents Endorsement Leads to Investor Losses, Lawsuits, and Impeachment Calls
As widely reported, Argentina’s President Javier Milei is facing a political crisis after promoting a cryptocurrency called LIBRA, which rocketed in value before suddenly collapsing nearly 97% within hours, however insiders cashed out millions ahead of the collapse, resembling a classic 'rug pull' scam. The fallout has led to financial losses for thousands of investors, triggering lawsuits, political backlash, and calls for Milei’s impeachment.
Milei's administration claims he was unaware of the project’s details but opposition leaders argue that his promotion directly fuelled speculation and losses. With over 100 legal complaints filed at Argentina’s Supreme Court and lawmakers demanding Milei answer questions before Congress, the crisis is deepening.
How the LIBRA Scandal Unfolded
On February 14, 2025, Milei tweeted to his 3.8 million followers, promoting LIBRA as a private initiative to fund small businesses. His endorsement triggered a viral price surge that pushed the token’s market cap to $4.56 billion within minutes.
Behind the scenes however, eight wallets linked to the LIBRA team quietly withdrew $107 million in liquidity, and automated trading bots linked to insiders also bought the token at $0.38 and sold at peak prices generating millions in minutes. Everything signalled that this was an orchestrated exit. Panic spread and LIBRA plummeted from $4.97 to $0.19 within hours, wiping out 74% of investor funds.
See: Crypto scams, DeFi hacks, and rug pulls: Why the crypto industry needs insurtech
Milei deleted his post at 10:38 PM, claiming he had “obviously no connection” to the project and was not familiar with its details. However, critics noted that he had met with the project’s backers just weeks before the launch. By midnight Feb 15 the crash was complete.
Legal and Political Fallout
After the collapse more than 100 legal complaints were filed at Argentina’s Supreme Court accusing Milei of participating in a fraudulent scheme. Opposition lawmakers estimate 40,000 investors suffered financial losses with some losing up to $100,000. The scandal even rocked Argentina's stock arket with the Merval index dropping 5.6% on February 17. Calls for Milei's impeachment grew louder with former President Cristina Kirchner branding him a "crypto fraudster".
Who Else Was Involved in LIBRA?
Two companies were behind LIBRA which were largely unknown in the crypto sector before launching the project.
- Julian Peh, KIP Protocol positioned his firm as a blockchain initiative but had no previous ties to crypto investments
- Hayden Mark Davis, Kelsier Ventures later blamed Milei for withdrawing support saying his endorsement was promised to continue
What Happens Next?
Milei has ordered an internal investigation but critics argue that it's a political maneuver to deflect responsibility. Argentina’s Supreme Court is investigating whether Milei was involved in the scam or simply made a mistake. If found guilty, he could be impeached or face criminal charges, which could further weaken Argentina’s already unstable economy.
Aside Update: Decrypt reports that Binance founder Changpeng Zhao (CZ) has since donated 150 BNB (about $60,000 USD) to help people who lost money in the $LIBRA scam. While the donation offers some relief, it still only represents a small part of the total losses.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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