Argentine prosecutors have uncovered draft agreements suggesting President Javier Milei may have played a role in the launch of the controversial LIBRA cryptocurrency, which collapsed weeks after its debut.
The documents were recovered from the phone of lobbyist Mauricio Novelli and include multiple draft versions of a confidential agreement between Milei and LIBRA co-creator Hayden Davis. The final agreement, allegedly signed in late January 2025, appointed Davis as a blockchain advisor ahead of LIBRA’s February 14 launch.
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Prosecutors say the timing of the drafts, combined with financial transfers linked to Davis and Novelli during the same period, adds a financial oversight dimension to the investigation.
The Milei administration has denied signing or formally acknowledging the agreement. Investigators also recovered partial communications involving Novelli, Milei, Milei’s sister Karina, Davis, and other key figures linked to the LIBRA launch.
$1 Million Transfer Under Investigation
On the day the agreement was signed, roughly $1 million in USDC moved from Davis-linked wallets through an intermediary to accounts tied to Novelli.
The contract reportedly required Davis to provide advisory services under a non-disclosure agreement without payment. Prosecutors are examining whether the financial flows were tied to undisclosed advisory work and potential irregularities surrounding the LIBRA launch.
The investigation has been ongoing for over a year, experiencing delays. Hayden Davis remains free, and no legal action against him has been confirmed. Authorities continue tracing the origins of the contracts and related financial transactions to assess the involvement of political and private actors in the project.
LIBRA Collapse Sparks ‘Cryptogate’ Scandal
The LIBRA cryptocurrency, launched by U.S. co-creator Hayden Davis, quickly became a financial controversy after losing significant investor value within weeks.
On February 14, 2025, President Milei promoted LIBRA on his personal X account. The coin price spiked sharply before collapsing when alleged insiders sold off, causing estimated investor losses of around $250 million.
The scandal has been widely described as a “rug pull,” where token creators hype the asset and sell at the peak.
It also became the first major controversy of Milei’s presidency, dubbed “Cryptogate.” The incident has triggered criminal probes, impeachment calls, a congressional investigation, and ongoing lawsuits.
Milei has denied wrongdoing, calling LIBRA a private project he promoted in good faith.
Why This Matters
The LIBRA case underscores the challenges of political entanglement in crypto projects, highlighting the importance of transparency, governance, and investor due diligence in crypto launches.
The ongoing investigation may also influence how regulators and market participants evaluate the role of political figures in emerging crypto ventures.
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People Also Ask:
A rug pull occurs when crypto creators hype a token to attract investors, then sell their holdings suddenly, causing the price to collapse.
Lobbyists may connect private actors with political figures or influence agreements; their communications and documents are often examined in investigations.
Investigations have focused on whether political promotion, undisclosed agreements, financial transfers, insider selling, or other irregularities involving public figures and crypto operators contributed to the collapse.
