Recent forensic analysis in an ongoing Argentine judicial investigation has uncovered a draft document alleging a $5 million payment arrangement tied to President Javier Milei’s promotion of the LIBRA memecoin in February 2025.
The document was recovered from the phone of crypto lobbyist Mauricio Novelli during a digital forensics examination by DATIP; a specialized unit within Argentina’s Federal Public Prosecutor’s Office. It outlines a three-tier payment structure: $1.5 million upfront in cash or liquid tokens. $1.5 million contingent on Milei publicly announcing Hayden Davis LIBRA’s creator, associated with Kelsier Ventures as an adviser on social media.
$2 million upon Milei signing a formal consulting contract related to blockchain and AI for the Argentine government or personally, involving Milei and his sister Karina. The draft was reportedly created around February 11, 2025—three days before Milei’s X post endorsing the token and sharing its contract address, which caused the token’s price to surge dramatically briefly reaching a market cap over $4 billion before collapsing by over 90-96% in hours, leading to significant investor losses; estimates range from $99-251 million withdrawn by insiders and descriptions of it as a potential rug pull or scam.
Supporting evidence from the probe includes call logs showing multiple contacts between Milei, Novelli, Karina Milei, and adviser Santiago Caputo around the launch period. This contradicts Milei’s earlier statements that he merely “shared” the project in good faith without deeper involvement or promotion.
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The investigation, ongoing since 2025, treats this as part of a broader inquiry into potential fraud, with no charges filed against Milei to date. Milei has denied direct promotion or financial ties, and the document is described as a draft; no verified signature or confirmed payment execution in public reports. The scandal has fueled political controversy, opposition demands for testimony, and scrutiny over political endorsements in crypto.
This remains an active probe with developing details—outcomes could range from exoneration to further implications, but current forensics point to coordinated planning around the endorsement rather than proven receipt of funds by Milei.
The token surged to a peak market cap over $4 billion before collapsing over 90-95% within hours, with blockchain analyses showing insiders including wallets linked to creator Hayden Davis of Kelsier Ventures withdrawing roughly $99-124 million; some estimates up to $251 million in total losses. It has been widely described as a rug pull or coordinated pump-and-dump scam affecting tens of thousands of investors.
The federal criminal investigation led by Judge Marcelo Martínez De Giorgi and prosecutor Eduardo Taiano remains active but slow-moving. Over a year since the incident, no key suspects including Milei have been formally summoned as witnesses or charged, despite opposition accusations of delays or cover-ups. WhatsApp messages and calls between Milei/Novelli minutes before/after the promotional post, contradicting Milei’s claims of no direct involvement.
Other deleted and ephemeral messages and patterns suggesting coordinated planning. A congressional investigative commission; presided over by deputy Maximiliano Ferraro concluded in late 2025 that Milei provided “essential collaboration” in an international fraud and recommended Congress evaluate misconduct, potentially opening impeachment paths.
Assets worth over $500K have been frozen in related probes, with calls to expand embargoes. Parallel U.S. class-action lawsuits and potential criminal probes in New York seek victim compensation and could incorporate Argentine findings. Opposition groups demand Milei’s testimony in Congress, removal of prosecutors for alleged obstruction, and interpellations of figures like Karina Milei and Manuel Adorni.
Milei and his administration deny wrongdoing, insisting the post was personal/”in good faith” not official promotion, with no proven payments or contracts executed. The government has downplayed recent leaks as not altering his legal status and accuses opponents of political opportunism. This is widely seen as Milei’s greatest ongoing threat, eroding public confidence amid falling approval ratings and economic challenges.
Opposition has pushed impeachment bills, though they lack sufficient votes in Congress to succeed. It damages Milei’s libertarian, anti-corruption image and Argentina’s credibility in crypto and fintech circles, potentially deterring investment.
Broader fallout includes scrutiny of political endorsements in crypto, reputational hits to memecoins tied to figures, and calls for clearer rules on promotions. Highlights risks of high-profile endorsements: one tweet can drive massive pumps followed by devastating dumps, harming retail investors and trust in emerging markets’ crypto adoption.
Argentina’s already volatile economy faces added pressure; the scandal diverts focus from reforms and fuels narratives of elite corruption. No major market-wide crash from recent revelations; crypto sentiment remains in “extreme fear” territory, but it reinforces caution around politically linked tokens.
The case is developing rapidly with fresh leaks fueling media and opposition pressure. Outcomes range from exoneration; if evidence deemed insufficient to severe consequences like impeachment attempts, further asset freezes, or international legal entanglements. Milei has not been charged, and the probe’s pace remains contentious.