Controversial Connections: The Libra Token Scandal
A prominent figure behind the controversial Libra token has reportedly boasted about securing access to Argentine President Javier Milei’s inner circle months prior to the memecoin’s notorious launch and subsequent collapse. In a series of text messages reviewed by CoinDesk, Hayden Davis, the CEO of Kelsier Ventures, claimed he could effectively “control” Milei due to financial transactions he had been making to Karina Milei, a significant player within the president’s administration, and also Milei’s sister.
Davis made bold assertions in these messages from mid-December, stating, “I control that n,” and elaborated, “I send $$ to his sister and he signs whatever I say and does what I want.” Despite the gravity of these claims, there was no immediate indication of any financial exchanges between Davis and Milei’s inner circle leading up to the launch of Libra.
The revelations from December add a complex layer to an ongoing anti-corruption investigation initiated by Argentina’s presidential office regarding Javier Milei. On February 15, Milei had spotlighted the ill-fated Libra cryptocurrency as an innovative solution for funding small businesses across the nation. However, the most significant beneficiaries from the launch of the Solana-based memecoin were Davis and Kelsier Ventures, whose controlled wallets amassed over $100 million during Libra’s explosive early trading, where it surged to $5 before plummeting over 95%, resulting in the loss of millions in speculative investments.
In light of these events, opposition leaders in Argentina have threatened to initiate an impeachment trial concerning the matter, which has been dubbed “critpogate” by local media outlets. This scandal is currently impacting Argentina’s stock market and has prompted Milei to engage in “damage control,” according to analysts observing the country’s cryptocurrency environment.
In the December text exchanges, Davis suggested he could persuade Milei to promote various ventures via social media. Notably, when Milei tweeted about Libra two months later, it contributed to the token’s surge in popularity. However, after just five hours and following the discovery of dubious activities by on-chain analysts, he deleted the tweet, by which time Libra’s value had already begun its rapid decline.
