Libra Meme Coin Scandal Expands! Argentine President Embroiled in 5 Million Dollar Promotion Deal

Argentine President Javier Milei Involved in Libra Meme Coin Scandal, Suspected Draft of $5 Million Agreement, Token Plummets 94%, Triggering Political and Judicial Investigations.

Investigation Documents Reveal Suspected $5 Million Cooperation Agreement

The Argentine cryptocurrency scandal heats up again. According to local media outlet El Destape, during a judicial investigation, prosecutors obtained a draft document from the phone of crypto industry lobbyist Mauricio Novelli, which appears to mention a $5 million agreement related to promoting Libra meme coin by President Javier Milei.

The document was recovered during digital forensic analysis of the Libra incident. The investigation was conducted by DATIP, the crime technical support division under the Argentine prosecutor’s office, which restored all data from Novelli’s device. The file was created on February 11, 2025, just three days after Milei posted about Libra on social platform X.

Image Source: El Destape Prosecutors obtained a draft document from Mauricio Novelli’s phone

According to the leaked content, the document is written in English and begins with “This is the final agreement after discussion with H.” The public widely believes that “H” refers to crypto entrepreneur Hayden Davis, a key figure in the Libra token project.

The document describes a three-phase payment structure totaling $5 million. However, it does not specify the final recipient of the funds, which is a major focus of the current judicial investigation.

The document reveals a three-stage payment plan, closely timed with the president’s social media post

According to media reports, the draft lists three payment conditions. First, a $1.5 million prepayment, payable in tokens or cash; second, another $1.5 million related to Milei publicly announcing Hayden Davis as an advisor on X; and finally, $2 million associated with signing a blockchain and AI consulting contract.

The content suggests the contract might involve providing blockchain and AI consulting services to the Argentine government or Milei himself, requiring review by the president and his sister Karina Milei.

Notably, call records obtained by prosecutors show that between February 14, 2025, before and after the Libra token address was announced, Novelli and Milei had frequent calls. On the evening of February 14, at 7:01 PM, Milei posted about Libra on X, and between 6:54 PM and 7:03 PM, they had multiple conversations.

Subsequently, Novelli also contacted Karina Milei. During the night, as Libra’s price fluctuated wildly, he was in frequent contact with several government advisors and industry figures, raising questions about deeper connections between the project and high-level officials.

Libra Market Cap Once Reached $4 Billion, Then Dropped 94% in Hours

The Libra meme coin incident first erupted in February 2025. After Milei posted about the project on X, the token’s price surged rapidly, with market cap briefly surpassing $4 billion.

However, the market enthusiasm was short-lived. Within hours, the token’s price plummeted over 94%, causing losses to more than 40,000 retail investors and evaporating approximately $250 million in market value.

On-chain data shows that eight wallets associated with the project cashed out about $107 million before and after the price collapse, leading many in the market to label it a classic “meme coin pump and dump.”

The Libra team and Kelsier Ventures are closely linked. CEO Hayden Davis admitted in an interview that the team engaged in “sniping trades” at launch and controlled wallets holding over $100 million.

Further Reading
Did Argentina’s President Pump and Dump? The Full Story of Libra’s 90% Collapse — Could the President Be Ousted?

Crisis PR Draft Leaked, Case Still Under Judicial Investigation

In addition to the suspected payment agreement, investigators found another document on Novelli’s phone, seemingly a crisis communication plan prepared for Milei. The draft was created on February 16, 2025, two days after the incident erupted.

The document begins with “This is the only post that can save him, me, and all of us.” It suggests Milei publicly support the Libra project while denying any financial ties and attributing controversy to political opponents’ attacks.

The Argentine government continues to deny any misconduct by the president. The Anti-Corruption Office stated in June 2025 that Milei’s statements are personal opinions, not official policy, and thus do not violate public service ethics.

Further Reading

No Evidence of Crime? Argentina’s President Involved in Meme Coin Insider Trading, but Investigation Agency Dissolved!

However, the case is not over. Argentine federal criminal investigations are ongoing, and U.S. class-action lawsuits have been filed by investors. As new investigation documents emerge, the political and legal fallout from the Libra meme coin scandal may continue to expand.

This article is compiled by Crypto Agent from various sources, reviewed and edited by Crypto City. It is still in training, so there may be logical or informational errors. Content is for reference only. Do not consider as investment advice.