The cryptosphere was rocked by scandal this week as stunning allegations emerged that the co-creator of the controversial Libra token had been buying influence with Argentine President Javier Milei by sending money to his powerful sister Karina Milei. The bombshell claims, coming from none other than Libra’s own Hayden Davis, CEO of Kelsier Ventures, have ignited a firestorm in Argentina, with opposition leaders threatening impeachment and an anti-corruption probe already underway.
“I Control That N****: Davis’ Jaw-Dropping Boasts
In a series of explosive text messages reviewed by CoinDesk, Davis brazenly bragged about his sway over President Milei, claiming “I control that n****. I send $$ to his sister and he signs whatever I say and does what I want.” The messages, dating back to mid-December, suggest Davis had been greasing palms in Milei’s inner circle months before the doomed launch of Libra on February 15th.
While it remains unclear if any money actually changed hands between Davis and the Mileis prior to Libra’s debut, the timing of the alleged influence peddling raises serious questions. Javier Milei had brought major attention to Libra by touting it as an innovative way to fund small businesses, a tweet that sent the Solana-based coin soaring to $5 before an epic 95% crash that vaporized millions in reckless speculative investments.
A Memecoin Heist in Broad Daylight?
On-chain data reveals a disturbing picture of what increasingly looks like a brazen pump and dump. Wallets linked to Davis and Kelsier Ventures raked in over $100 million in the early hours of Libra’s launch, just as Milei’s glowing tweet was sending the token to the moon. But the joy ride didn’t last – a mere 5 hours later, Milei deleted his tweet, and Libra came crashing back to earth as panicked sellers raced for the exits.
It was like watching a heist unfold in broad daylight.
– Anonymous Argentina Crypto Trader
An Impeachment Threat Looms for Milei
The scandalous episode quickly earned the moniker “Cryptogate” in the Argentinian press and has plunged Milei’s presidency into turmoil. Opposition leaders are readying impeachment charges over the incident. The country’s stock market has faltered under the uncertainty. And observers say the embattled president is in “full damage control mode.”
- Key allegation: Davis claims payments to Milei’s sister bought promotional support
- Wallet analysis shows Davis entities banking $100M+ from Libra’s doomed launch
- Anti-corruption probe into “Cryptogate” underway as impeachment looms for Milei
A Presidency on the Brink
As the sordid details of the Libra scandal continue to unfold, Javier Milei’s grip on power appears increasingly tenuous. While the anti-corruption investigation is still in its early stages, the explosive claims of backroom payments and brazen market manipulation have badly damaged the upstart president’s populist image.
For a leader who swept into office on promises to drain the swamp and bring radical transparency, the Libra affair undermines the core of Milei’s political brand. With the “Cryptogate” probe heating up and impeachment charges on the horizon, this crypto scandal may well spell the beginning of the end for Argentina’s embattled president.
