#MileiMemeCoinControversy

Today in crypto, FTX is set to begin repaying $1.2 billion to creditors, marking a key step in the exchange’s bankruptcy proceedings, Argentine President Javier Milei made his first public statement since the disastrous Libra memecoin launch to deny any wrongdoing on his part, and the ratio of long to short positions on SOL in futures markets is tilting bearish as memecoin losses mount.

FTX’s $1.2 billion repayments mark key moment in crypto industry recovery

FTX Digital Markets, the Bahamian unit of the collapsed cryptocurrency exchange FTX, is set to repay the first group of creditors on Feb. 18 in a significant development for the crypto industry following the exchange’s almost $9 billion collapse.

The downfall of FTX and more than 130 subsidiaries launched a series of insolvencies that led to the industry’s longest-ever crypto winter, which saw Bitcoin’s (BTC) price bottom out at around $16,000.

In a key moment for the crypto industry’s recovery, FTX’s Bahamas wing will honor the first batch of repayments for users who are owed less than $50,000 worth of claims.

Users will receive their funds at 3:00 pm UTC on Feb. 18, according to a Feb. 4 X post from FTX creditor Sunil, who is part of the largest group of more than 1,500 FTX creditors, the FTX Customer Ad-Hoc Committee.

The repayments will bring an estimated $1.2 billion worth of capital to the first wave of defrauded FTX users.

Despite the positive news, some creditors have criticized the repayment model, which reimburses claimants based on cryptocurrency prices at the time of bankruptcy. Bitcoin prices, for example, have increased by more than 370% since November 2022.

Argentine president denies promoting failed LIBRA memecoin

Argentina’s president, Javier Milei, has refuted claims that he promoted the controversial Libra token, which quickly tanked in value, leading the crypto-friendly politician to face multiple fraud suits and a call for his impeachment.

“I did not promote that. What I did, I spread the word,” Milei said during a Feb. 17 interview with Todo Noticias, his first public statement since the Libra token controversy that local media have dubbed “Libragate.”

Milei claims he has “nothing to hide” and acted in “good faith,” he acknowledged that he has “something to learn” from the ordeal, including the need to “start setting filters” on what conduct is appropriate and what isn’t.

The libertarian economist said that problems flowing from the token launch should only include the parties involved. “The state plays no role here,” Milei said.

Solana shorts spike amid memecoin scandals

Traders are increasingly positioning for a drawdown in Solana’s native SOL (SOL) coin as sentiment plummets amid mounting memecoin scandals on the network, according to data reviewed by Cointelegraph.

According to data service Coinalyze, the ratio of long to short SOL positions on cryptocurrency futures exchanges dropped from 4 to 2.5 on Feb. 17, implying a marketwide tilt toward bearishness on SOL.

In the fourth quarter of 2024, application revenues on Solana increased by 213%, primarily due to memecoin speculation, according to a report by crypto research firm Messari.

Now, insider selling and huge losses for retail are souring sentiment on Solana’s memecoin ecosystem.

“The amount of shit thats coming up to the surface now is really badly damaging to SOL ecosystem,” Runner XBT, a pseudonymous trader, said in a Feb. 16 X post.

On Feb. 14, Libra (LIBRA), a cryptocurrency seemingly endorsed by Argentine President Javier Milei, erased some $4.4 billion in market capitalization within hours of launching.

Milei initially promoted the coin on X but has since deleted his post. He is now facing lawsuits in Argentina for allegedly misleading investors.

Since January, traders have lost approximately $2 billion across 800,000 wallets on Official Trump (TRUMP), US President Donald Trump’s official memecoin.
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#MileiMemeCoinControversy