Milei and the $Libra Crypto Scam: A Million-Dollar Controversy

Argentine President Javier Milei is facing increasing pressure as a judicial investigation into the $Libra cryptocurrency scam intensifies. The investigation centers around Milei’s promotion of the digital currency on social media and potential ties to a lucrative agreement.

The Alleged $5 Million Deal

Forensic experts examining the phone of businessman Mauricio Novelli discovered a purported agreement worth five million US dollars in exchange for Milei’s support of the $Libra project. The document, recovered after being deleted from Novelli’s notes, details a payment structure linked to Milei’s public endorsements. While the government hasn’t confirmed the agreement, the amount aligns with digital wallet transfers identified by computer experts.

According to the recovered document, Novelli wrote, “Hello friends, This is the final agreement discussed with H,” referring to Mark Hayden Davis, the CEO of the company behind $Libra, launched on February 14, 2025. The agreement outlined:

• $1.5 million as an advance
• An additional $1.5 million upon Milei’s public endorsement of Davis on Twitter
• A further $2 million for a formal contract for blockchain/AI consulting services for the Argentine government or Milei himself.

This draft agreement dates back to October and November 2024, prior to Davis’s visit to Argentina. Following a meeting with Davis at the Casa Rosada in January, Milei posted a selfie with Davis on X (formerly Twitter), stating that Davis was advising him on cryptocurrency matters. This sparked concern among local crypto experts, who were unfamiliar with Davis’s background.

Communication Records and the Launch of $Libra

Recent call logs incorporated into the judicial investigation reveal over thirty phone calls and messages between Novelli and individuals close to Milei in the hours leading up to and following the launch of $Libra. This further fuels speculation about the extent of Milei’s involvement.

Milei promoted $Libra on his X account, presenting it as a private project aimed at “incentivizing the growth of the Argentine economy, funding small businesses and Argentine ventures.” The post included a website link and a smart contract code for potential investors. The President’s endorsement led to a surge in investment, followed by a rapid collapse, leaving many investors with significant losses while a select few profited immensely.

The Aftermath and Milei’s Defense

The fallout from the $Libra collapse has triggered a potential transnational fraud investigation and represents the most significant scandal of Milei’s presidency thus far. Initially, Milei claimed he simply copied the smart contract code from the internet and shared it on X. However, computer experts commissioned by Congress determined that the specific code Milei posted was not publicly available at the time of his tweet.

The newly discovered evidence further complicates Milei’s position and raises serious questions about his involvement in the $Libra cryptocurrency scheme. This case highlights the risks associated with unregulated cryptocurrencies and the potential for abuse by those in positions of power. For more information on cryptocurrency risks, see Investor.gov.