Catenaa, Thursday, February 20, 2025 – Argentine President Javier Milei has denied allegations of fraud after a cryptocurrency he mentioned on social media collapsed, causing investor losses.
President Milei is under mounting scrutiny over his alleged involvement in the collapsed $LIBRA cryptocurrency, with new claims implicating his sister, Karina Milei, in the controversy.
Reports from La Nacion and CoinDesk allege that Hayden Davis, a key figure behind the Libra token, claimed in messages that he paid Karina Milei to influence the president’s promotion of the cryptocurrency. Davis later denied directly paying Milei but admitted profiting from the token’s surge and crash. Karina Milei reportedly met with crypto consultant Mauricio Novelli before introducing her brother to those linked to the project.
The scandal erupted last Friday when Milei’s social media post about Libra triggered a surge in the token’s market capitalization to $4.5 billion. After he deleted the post, the token’s value plummeted, sparking investor outrage and fraud accusations. Milei has denied endorsing the coin, saying his post was meant to highlight a financial tool for Argentine entrepreneurs rather than encourage investment.
Milei’s efforts to contain the fallout backfired when a leaked hot mic incident suggested media interference by his aides. Meanwhile, his political opponents, led by the left-wing Peronist camp, have filed fraud charges and called for impeachment. Milei, in turn, has launched an anti-corruption probe while downplaying investor losses, claiming only about 5,000 people—mostly from China and the U.S.—were affected.
As pressure mounts, Milei and his sister are scheduled to visit Washington this week, where a meeting with US President Donald Trump may take place.
