Argentina's federal judiciary is pressing forward with a criminal investigation into President Javier Milei over his promotion of the $LIBRA cryptocurrency - a scandal that has evolved from a social media controversy into a full-blown constitutional crisis.
KEY TAKEAWAYS
Argentina’s President Javier Milei is under federal investigation for allegedly orchestrating a cryptocurrency “rug pull” that wiped out over 100,000 investors.
Forensic evidence from a lobbyist’s phone links Milei to a $5 million payment scheme tied to his promotion of the $LIBRA token.
His sister Karina Milei is now a primary target of prosecutors, with her phone seized and bank records unsealed.
Interpol has been asked to issue a Red Notice for $LIBRA’s creator, Hayden Davis, who remains at large.
According to a report by argentinian media ElDestape, the probe targets allegations of fraud, illicit association, and bribery, with forensic evidence that has steadily dismantled the government’s official account of events.
Federal Prosecutor Eduardo Taiano is leading the case. A congressional commission concluded in November 2025 that both Milei and his sister Karina — General Secretary of the Presidency — bear direct political responsibility for the collapse. The administration ignored multiple subpoenas and disbanded its own anti-corruption task force in May 2025, just as bank records were unsealed. Critics have not let that timing go unnoticed.
Milei frames the investigation as a political attack by what he calls the “caste.” The argument has found less traction as new evidence surfaces.
The $5 Million Agreement
The most consequential piece of evidence is a document recovered from the iPhone of Mauricio Novelli, a crypto lobbyist who served as intermediary between the developers and the President’s inner circle. Dated three days before the token launched, it outlines a tiered payment structure totaling $5 million: $1.5 million upfront, another $1.5 million triggered by Milei publicly naming developer Hayden Davis as his official adviser, and a final $2 million upon signing a formal government consulting contract. Prosecutors believe the funds were intended for the President, his sister, and intermediaries.
The Forensic Case
Milei’s claim that he stumbled across the contract address online and shared it in good faith has not survived scrutiny. Argentina’s DATIP forensic unit confirmed the address was private and unpublished at the moment he posted it — it did not exist anywhere on the public internet. Phone records show Milei and Novelli exchanged five messages at the precise moment the post went live. A second document on Novelli’s phone contained a pre-written draft of the public apology Milei eventually issued, including the line: “This is the only thing that saves him, me, and us.” Prosecutors argue his crisis response was scripted by the people running the alleged scheme.
Legal and Political Fallout
Milei faces federal criminal charges in Argentina and opposition calls for impeachment. The path to removal is narrow — his party improved its congressional standing after the October 2025 midterms, making the required two-thirds majority difficult to reach. The case is further slowed by a jurisdictional dispute between two federal judges.
Internationally, New York firm Burwick Law filed a class-action in March 2025 on behalf of foreign investors, targeting Davis and his associates. Milei is not named — presidential immunity and jurisdictional complexity are the primary obstacles — but U.S. attorneys are seeking access to Argentine forensic evidence to establish a coordinated scheme. As of March 2026, Prosecutor Taiano has formally requested an Interpol Red Notice for Davis, citing his estimated $100 million in crypto proceeds as a substantial means to evade justice.
What You Need to Know: LIBRA And Milei’s Alleged Role
What Happened
On February 14, 2025, the $LIBRA token was created on the Solana blockchain by Kelsier Ventures. Within three minutes, Milei posted its private contract address to roughly 30 million followers, calling it a project to “stimulate the Argentine economy.” The market cap surged from near zero to $4.6 billion almost instantly. Within hours, wallets linked to the developers — who held around 70% of supply — sold their positions. The price collapsed by over 90%. Eight wallets cashed out an estimated $107 million. Losses across approximately 114,000 investor wallets are estimated between $251 million and $4 billion.
The Evidence
Three categories of evidence tie Milei to the scheme. The $5 million tiered agreement establishes the post had an explicit cash value — it was negotiated, not spontaneous. The forensic metadata directly contradicts his defense: the address was not publicly available, and records show he was in direct contact with Novelli the moment it was published. The pre-written apology, also found on Novelli’s phone, suggests the developers anticipated collapse and prepared Milei’s public response two days before it happened.
Karina Milei’s Role
The President’s sister has become a central figure. Evidence shows she authorized Davis and Novelli to enter the Casa Rosada and the presidential residence at least 16 times between late 2024 and February 2025. Leaked messages attributed to Davis, published by CoinDesk and La Nación, include a claim that he controlled the President through payments made to his sister. She has denied receiving anything. Her phone was seized in March 2025 and her bank records subsequently unsealed. The recovered agreement names her as a party to the negotiations.
Where Things Stand
Javier Milei remains under federal investigation with enough congressional support to survive impeachment — for now. Karina Milei’s finances are under court-ordered scrutiny. Hayden Davis is subject to an international arrest request, with assets frozen across two jurisdictions. He claims in a New York filing that the project was legitimate and that Milei’s deletion of the post caused the crash — positioning himself as the one who was betrayed.
The central question has shifted. It is no longer whether something went wrong. The investigation is now focused on what the President knew, when he knew it, and what he was paid.
