Argentina’s President Milei Faces Scrutiny Over Alleged $5 Million Deal Linked to Cryptocurrency $LIBRA
Buenos Aires, Argentina – A judicial investigation into the collapse of the cryptocurrency $LIBRA has uncovered a potentially damaging allegation against Argentine President Javier Milei: a purported $5 million agreement in exchange for his support in promoting the digital currency. The investigation centers around a draft agreement recovered from the phone of businessman Mauricio Novelli, detailing payments contingent on presidential backing and public endorsements of the project. The timing of the alleged deal coincides with events that later became central to the broader scandal surrounding $LIBRA, raising questions about the extent of Milei’s involvement and potential conflicts of interest.
The recovered draft, according to reports from Argentine media outlets EFE and El País, outlines a tiered payment structure. It allegedly promised a $1.5 million advance, followed by another $1.5 million upon Milei publicly announcing his endorsement of Hayden Davis – the CEO associated with the company behind $LIBRA – on the social media platform X (formerly Twitter). A final payment of $2 million was reportedly tied to a formal contract for Milei to provide advisory services in blockchain technology or artificial intelligence to the Argentine government.
The Recovered Draft and Key Players
The draft agreement, recovered by forensic experts from Novelli’s phone after he attempted to delete it, appears to have been written between October and November 2024, prior to Davis’s visit to Argentina. The text references “H,” widely understood to be Hayden Davis, and details the conditions for securing presidential support. Mercopress reports that investigators have confirmed the draft’s recovery, though no public proof has yet emerged validating the agreement’s formal ratification by the government.
Mauricio Novelli, the businessman whose phone contained the draft, is currently under investigation in connection with the launch of $LIBRA. Hayden Davis, the CEO of the company behind the cryptocurrency, launched the token on February 14, 2025. The investigation gained momentum after Milei met with Davis at the Casa Rosada on January 30, 2025, and subsequently posted a selfie with him on X, describing Davis as an advisor on cryptocurrency matters. This meeting, and the subsequent social media post, drew scrutiny from local cryptocurrency experts who were unfamiliar with Davis’s background.
The $LIBRA Cryptocurrency and its Collapse
The $LIBRA cryptocurrency was presented as a project intended to stimulate Argentina’s economic growth. However, the project quickly became mired in controversy following its launch, and ultimately collapsed. The current judicial investigation aims to determine the extent of any fraudulent activity and the roles played by those involved, including President Milei. The timing of the alleged agreement, as detailed in the recovered draft, directly precedes the events that led to the cryptocurrency’s downfall, fueling suspicions of a pre-planned scheme.
The investigation is focusing on whether Milei’s public endorsement of $LIBRA was influenced by the alleged financial agreement. The recovered document specifies that the $1.5 million payment was contingent on Milei announcing on X that Davis and his associates were advising him on blockchain-related matters. The subsequent $2 million payment was linked to a potential advisory contract for Milei himself, covering blockchain and artificial intelligence, with involvement from both Javier and Karina Milei, the President’s sister.
Legal Implications and Ongoing Investigation
The Argentine court’s probe is examining potential violations of financial regulations and possible conflicts of interest. While the recovered draft provides a significant piece of evidence, investigators are still working to establish whether the agreement was formally validated and whether any funds were actually transferred. The investigation is ongoing, and further details are expected to emerge as the court continues to analyze evidence and interview witnesses.
The allegations come at a sensitive time for President Milei, who has staked his political reputation on economic reform and attracting foreign investment. The scandal surrounding $LIBRA and the alleged $5 million deal could significantly damage his credibility and undermine his efforts to stabilize the Argentine economy. The case is likely to intensify political tensions in Argentina and could lead to calls for impeachment or other legal action against the President.
Expert Analysis: The Risks of Cryptocurrency Endorsements
The situation highlights the inherent risks associated with celebrity or political endorsements of cryptocurrencies. The volatile nature of the cryptocurrency market, coupled with the potential for fraudulent schemes, makes such endorsements particularly problematic. Investors often rely on the credibility of endorsers, and a lack of due diligence can lead to significant financial losses.
“This case serves as a cautionary tale,” says Dr. Elena Ramirez, a blockchain technology expert at the University of California, Berkeley. “It underscores the importance of independent research and critical thinking before investing in any cryptocurrency, regardless of who is promoting it. The promise of high returns should always be tempered with a healthy dose of skepticism.”
The Argentine investigation into the $LIBRA cryptocurrency and the alleged agreement with President Milei is a developing story with potentially far-reaching consequences. As the court continues its investigation, the public will be closely watching for further revelations and a determination of the facts surrounding this controversial case.
The next key development in this case is expected to be a hearing scheduled for April 15, 2026, where investigators will present further evidence and testimony. Updates on the investigation will be available through official court filings and reports from reputable news organizations. Readers are encouraged to share their thoughts and perspectives on this developing story in the comments section below.