In a shocking turn of events, Hayden Davis, co-creator of the cryptocurrency LIBRA and CEO of Kelsier Ventures, has been accused of attempting to exert influence over Argentine President Javier Milei by allegedly making payments to his sister, Karina Milei. The revelations have sparked outrage in Argentina, raising concerns about political corruption and cryptocurrency manipulation.
Allegations of Influence and Secret Payments
According to text messages obtained by CoinDesk, Davis reportedly boasted about his influence over President Milei, claiming that he could control presidential decisions by funneling money to Karina Milei. In a message from December 2024, Davis allegedly stated, "I control that n—–—–. I send $$ to his sister, and he signs whatever I say and does what I want."
Despite these claims, there is no concrete evidence yet confirming whether any payments were made to Karina Milei before the controversial launch of the LIBRA token. Both Davis and the Milei administration have remained silent, refusing to comment on the accusations.
The Rise and Fall of LIBRA
The LIBRA token, launched on the Solana blockchain, gained sudden traction after President Milei endorsed it on social media on February 14, 2025. Promoting LIBRA as a tool to support small businesses in Argentina, Milei’s endorsement triggered a frenzy in the crypto market, skyrocketing the token’s value from nearly nothing to a peak of $5.20 in mere minutes.
However, the rapid price surge was followed by an even faster collapse. Wallets linked to Davis and Kelsier Ventures reportedly sold off massive holdings of LIBRA, profiting over $100 million while leaving investors with devastating losses. Within hours, the token's value plunged by more than 95%, raising suspicions of a classic "pump and dump" scheme.
Political and Legal Fallout
The scandal has sent shockwaves through Argentina’s political and financial sectors. Opposition parties have dubbed the situation “Criptogate” and are pushing for an impeachment inquiry into President Milei. The controversy has also impacted Argentina’s economy, contributing to declines in the stock market and sovereign bonds.
In response, President Milei has tasked the Anti-Corruption Office with investigating potential misconduct within his administration. Additionally, a government-led task force has been established to examine the circumstances surrounding LIBRA’s creation and promotion.
Meanwhile, an Argentine law firm has taken legal action in the United States, filing complaints with the U.S. Department of Justice and the FBI. The firm is seeking accountability for investors who suffered financial losses due to the LIBRA debacle.
Broader Implications for Crypto and Politics
The LIBRA scandal highlights the risks of intertwining politics with cryptocurrency ventures. As digital assets continue to evolve, the lack of regulatory oversight creates opportunities for exploitation, particularly when government figures get involved in promotional activities.
The global crypto community is closely watching how Argentina handles this crisis. The outcome could set a precedent for future regulations on political figures endorsing or engaging with cryptocurrency projects. For investors and policymakers alike, this incident serves as a stark warning about the potential dangers of unregulated digital financial markets.
As investigations continue, the scandal’s long-term impact on Argentina’s political stability and its approach to cryptocurrency remains uncertain. However, one thing is clear: the intersection of digital finance and political power has once again proven to be a volatile mix.
