Buenos Aires – The cryptocurrency scandal surrounding $LIBRA, a digital currency promoted by Argentine President Javier Milei, continues to deepen, with new allegations surfacing of a $5 million agreement intended to secure his endorsement. The unfolding situation, dubbed “Cryptogate” by some observers, is rapidly becoming the first major political crisis of Milei’s presidency, raising serious questions about transparency and potential conflicts of interest.
The controversy erupted in February 2025, when Milei publicly championed $LIBRA on his social media channels. The cryptocurrency, launched by the Delaware-registered company Kelsier Ventures, experienced a brief surge in value following his promotion, only to plummet dramatically shortly thereafter. Investors allege they lost a combined $251 million in the ensuing crash, prompting accusations of a “rug pull” scam – a fraudulent scheme where developers abandon a project and abscond with investor funds. The scandal has triggered investigations in both Argentina and the United States.
Origins of $LIBRA and Early Warnings
According to reports, the creation of $LIBRA was preceded by concerns about potential illicit activity. A week before the launch, Diógenes Casares, co-founder of decentralized finance company Stream Finance, reportedly wrote a report detailing rumors of a “meme coin around Milei” being developed, with suggestions of bribery involved. While Casares initially dismissed these rumors as unlikely, they foreshadowed the subsequent allegations. American analyst Nick O’Neill went further, stating that Milei and his team had been actively working on launching the token for weeks and that payments were made in connection with its development and launch.
Kelsier Ventures officially created the $LIBRA token on February 14, 2025, at 6:58 pm Argentina time, as part of a project called “Viva La Libertad” (Long Live Freedom). The company’s CEO, Hayden Davis, had previously met with Milei at the Presidential Palace in 2024, a meeting facilitated by Mauricio Novelli, a trader who has known Milei since at least 2021 and has served as an advisor to the president.
New Evidence: A $5 Million Agreement
The latest developments, reported by Argentine news outlet El Destape, center around a purported agreement discovered on Mauricio Novelli’s phone. Peritos judiciales (judicial experts) reportedly recovered a deleted note detailing a $5 million deal for Milei’s support of the cryptocurrency project. The note, addressed to “H” – believed to be Kelsier Ventures CEO Mark Hayden Davis – outlines the terms of the agreement. This discovery has intensified calls for Milei to provide a full accounting to both the Justice system and the Argentine Congress.
The investigation is focusing on the timing of Milei’s promotion of $LIBRA and the subsequent price manipulation. Critics argue that his endorsement created artificial demand, allowing insiders to profit handsomely while ordinary investors bore the brunt of the losses. The Economist has described the scandal as the “first big scandal” of Milei’s presidency, highlighting its potential to damage his credibility and political standing.
The Role of Mauricio Novelli
Mauricio Novelli appears to be a central figure in the scandal, acting as a key intermediary between Milei and Kelsier Ventures. His prior relationship with the president, dating back to at least 2021, and his role as an advisor raise questions about potential undue influence. The discovery of the alleged $5 million agreement on his phone further implicates him in the scheme. Novelli introduced Hayden Davis to Milei in 2024, setting the stage for the eventual promotion of $LIBRA.
Legal and Political Fallout
The $LIBRA scandal is unfolding against a backdrop of economic instability in Argentina. Milei, who assumed office in December 2023, has pledged to overhaul the country’s economy and tackle rampant inflation. The cryptocurrency was initially presented as a potential tool to stimulate economic growth, but its disastrous launch has undermined that narrative. The opposition is now demanding a thorough investigation and calling for Milei to explain his involvement in the project.
The legal ramifications are significant. Investigations are underway in both Argentina and the United States, with authorities examining potential violations of securities laws and fraud statutes. The scale of the alleged fraud – $251 million in investor losses – suggests that the consequences could be severe for those involved. The case is also drawing attention to the regulatory challenges posed by cryptocurrencies and the need for greater investor protection.
International Scrutiny
The $LIBRA scandal has attracted international attention, raising concerns about the potential for similar schemes to exploit vulnerable investors in other countries. The fact that Kelsier Ventures is registered in Delaware adds another layer of complexity to the case, potentially involving U.S. Legal authorities. The incident serves as a cautionary tale about the risks associated with unregulated cryptocurrencies and the importance of due diligence before investing.
The Future of $LIBRA and Milei’s Presidency
The future of the $LIBRA project remains uncertain. The website, www.vivalalibertadproject.com, remains active as of March 17, 2026, but the cryptocurrency’s value has plummeted, and its credibility is severely damaged. It is unclear whether the project will be able to recover from this scandal.
More immediately, the scandal poses a significant threat to Milei’s presidency. His approval ratings have already begun to decline, and the ongoing investigation could further erode public trust. The outcome of the legal proceedings and the extent of his personal involvement will likely determine the long-term impact of the $LIBRA affair on his political career. The investigation is ongoing, and further revelations are expected in the coming weeks.
As of March 15, 2026, Argentine judicial authorities have uncovered the alleged $5 million agreement, intensifying scrutiny on President Milei and his inner circle. The next key development is expected to be a formal request for Milei to testify before the Justice system and Congress regarding his involvement with the $LIBRA cryptocurrency. This case underscores the growing risks associated with the rapidly evolving world of digital assets and the need for robust regulatory frameworks to protect investors.
Dr. Olivia Bennett is Chief Editor, Business at World Today Journal.