What began as an act of goodwill by Binance founder Changpeng ‘CZ’ Zhao took an unexpected twist when his generous donation to victims of the LIBRA meme coin scam resulted in him receiving more crypto than he initially gave away.
Binance Founder Donates to LIBRA Scam Victims
CZ donated 150 BNB (approximately $100,000) to help those affected by the LIBRA debacle but soon found that the influx of donations to his wallet far exceeded his original contribution.
The LIBRA scam surfaced after Argentine President Javier Milei’s now-infamous social media endorsement sent the token’s price skyrocketing only for it to collapse soon after. The project, initially touted as a way to boost small businesses, turned out to be a pump-and-dump scheme that wiped out investor funds and left more than 40,000 victims in financial ruin.
In response, a college student named EnHeng began raising funds to aid those impacted, pledging $50,000. Moved by the effort, CZ stepped in on February 17, publicly announcing his donation of 150 BNB. However, when he shared the wallet address to facilitate transparency, an unexpected phenomenon occurred—more donations started flooding in, surpassing the initial sum he had given.
Within a short span, CZ’s donation address received an avalanche of contributions from the crypto community, quickly surpassing his 150 BNB pledge. By February 19, the wallet balance had grown to 620 BNB, equivalent to over $400,000.
Acknowledging the overwhelming response, CZ took to social media to share his surprise:
“When you try to make quick money, you often lose. When you give money away, you get more back.”
Rather than keeping the extra funds, he clarified that he would redistribute them to further aid scam victims, particularly those impacted by the LIBRA collapse, as well as holders of other struggling meme coins such as Broccoli and Test Token (TST).
The LIBRA Token Collapse
LIBRA’s rapid rise and sudden crash stand out as one of the most controversial events in crypto history. Launched on February 15, the token surged in value after President Milei promoted it on social media, linking it to an economic initiative. The endorsement triggered a wave of investor interest, propelling the token’s market cap to an astonishing $4 billion.
But the excitement didn’t last. Just as quickly as it climbed, LIBRA plummeted by 91% after Milei deleted his post and distanced himself from the project, claiming he had been misled. The abrupt collapse sparked fraud accusations, with investors alleging market manipulation by insiders. Subsequent investigations revealed that a single entity controlled more than 82% of the token’s supply, fueling suspicions that the crash was orchestrated.
The fallout didn’t stop there. Trading platforms like Jupiter and Meteora, which helped facilitate LIBRA’s transactions, are now under scrutiny. In the wake of the controversy, Meteora’s co-founder, Ben Chow, resigned amid allegations of insider trading and misconduct.
