Argentine President Javier Milei tied to $250 million crypto collapse

Argentine President Javier Milei has once again found himself at the center of a scandal involving the cryptocurrency Libra, which he promoted last year, The New York Times reports.

The scandal began after Milei posted a message on X about Libra, claiming it would help finance small Argentine businesses. Following his post, investors began buying the token: its price soared within hours but then collapsed after the largest holders sold their positions. As a result, investors suffered losses of $250 million.

Milei claimed that he merely mentioned a private project on his X account and had no involvement with the token itself. However, according to phone records from the investigation, on the night of Libra’s launch on February 14, 2025, Milei had seven phone calls with Argentine entrepreneur Mauricio Novelli. Some of these calls with the project organizers occurred before the president’s social media post, and some occurred after. The content of the calls is unknown, but the contacts suggest a possible link between Milei and the organizers of the scheme.

Milei is already considered a person of interest in the case, though no formal charges have been filed against him. In addition to the president, the investigation mentions his sister Karina Milei, advisor Santiago Caputo, and other associates.

According to The New York Times, the investigation is also examining claims that Novelli may have regularly paid Milei while he was still a legislator. WhatsApp voice messages from 2023 feature Novelli instructing an assistant to allocate “the usual 2,000 for Milei” in the budget, referring to it as a monthly salary. In another message from April 2024, several months after Milei assumed the presidency, Novelli mentions “the 4,000 we need to give to Karina,” presumably referring to the president’s sister.

Investigators also found draft documents on Novelli’s phone indicating possible financial links between the crypto project organizers and the president’s circle. One document describes a scheme to pay $1.5 million if Milei appoints American project consultant Hayden Davis as his advisor. Another document is an unsigned letter of intent in which Davis’s company offers free blockchain consulting to the Argentine government. There is no direct evidence that Milei received any payments or signed any documents. Hayden Davis, described by the publication as a participant in the crypto project, previously assisted with the launch of Melania Trump’s memecoin and has stated that he was only an advisor and did not profit from the project.

The newspaper notes that the scandal damages Milei’s political image. He came to power in 2023 promising to fight corruption. The opposition is demanding that key officials testify before Congress. Congressman Maximiliano Ferraro, leading the parliamentary investigation, stated: “The launch and promotion of $Libra was not at all improvised or accidental on the part of the president. It was a planned, coordinated and deliberately executed operation.”

Other scandals surrounding Milei’s administration exacerbate the situation. Argentine media previously published an audio recording suggesting that his sister and chief advisor, Karina Milei, may have been involved in bribery. The authenticity of the recording has not been verified, and the president has denied it, calling the source false. Cabinet Chief Manuel Adorni is also under prosecutorial review for alleged excessive travel and spending, which he denies.