The administration of Argentine President Javier Milei is facing mounting scrutiny after a cryptocurrency controversy linked to a digital token called $LIBRA. The incident, which began with Milei’s promotion of the token, has now led to an official investigation into potential fraud and allegations of undue influence over the president.
The controversy began when Milei endorsed $LIBRA on social media, suggesting it could help fund small businesses. Following his endorsement, the token’s value surged, reaching a market capitalization of $4 billion, only to plummet shortly thereafter. Investors lost millions, leading to widespread criticism.
A report from CoinDesk has since raised further concerns, alleging that the creator of $LIBRA, crypto entrepreneur Hayden Davis, claimed in private messages that he could influence Milei’s decisions. According to the report, Davis boasted about making payments to Milei’s sister, Karina Milei, a key figure in the government, and suggested that he had significant sway over the president’s actions.
Both Davis and the Milei administration have denied any formal connection. However, Davis has previously described himself as an adviser to Milei, stating that he was working with the administration on broader cryptocurrency initiatives. It remains unclear whether any financial transactions took place between Davis and Milei’s inner circle prior to the launch of $LIBRA.
The fallout has led Argentina’s Anti-Corruption Office to open an investigation into potential fraud related to the token’s rapid rise and crash. The government has also launched an inquiry into the companies and individuals involved in the token’s operations.
Milei, a self-described “anarcho-capitalist,” has been a vocal proponent of deregulated financial markets and cryptocurrency adoption. His administration’s economic policies have drawn support from libertarian circles and high-profile figures such as Elon Musk. However, these policies have also been met with criticism, particularly amid rising poverty and economic instability in Argentina.
