Did LIBRA Meme Coin Buy Presidential Influence? Scandal Rocks Argentina
The controversy surrounding the LIBRA meme coin has intensified as Argentine President Javier Milei faces scrutiny over allegations that his sister, Karina Milei, received payments to promote the token.
A Pay-for-Promotion Scheme?
According to reports from Argentine media outlet La Nacion, Hayden Davis—linked to the LIBRA (LIBRA) token and CEO of Kelsier Ventures—allegedly claimed in text messages that he could influence President Milei’s actions by paying his sister.
Screenshots of the messages purportedly sent by Davis to a crypto investment firm executive in December suggest a scheme to secure Milei’s public endorsement. One message allegedly read: “I send $$ to his sister, and he does whatever I say and want.” Another message reportedly stated: “We can also have Milei tweet, meet in person, and do promo.” The investment firm in question declined the offer.
Davis, when contacted by media sources, denied the allegations, stating he had no recollection of sending such messages and no record of them on his phone. He also denied making any payments to either Javier or Karina Milei.
Also read: Argentine Lawyers Urge US DOJ to Investigate LIBRA
Karina Milei, who serves as Argentina’s general secretary of the presidency, is a close adviser to her brother and frequently accompanies him on official overseas visits. Her alleged involvement in cryptocurrency promotion has led to sharp criticism from opposition leaders, who argue it raises ethical concerns and potential conflicts of interest within the government.
LIBRA Meme Coin Rise and Fall
Davis and Kelsier Ventures were among the biggest beneficiaries of the LIBRA meme coin launch, reportedly netting around $100 million. Despite this, Davis claimed he did not own the tokens and had no intention of selling them. At its peak, the LIBRA meme coin reached a $4.5 billion market capitalization before crashing by approximately 95%, leaving investors with substantial losses.
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Under increasing pressure from critics, including calls for impeachment, President Milei addressed the allegations for the first time in a Feb. 17 interview with Todo Noticias. He denied actively promoting the LIBRA meme coin, stating instead: “I did not promote that. What I did, I spread the word.” He dismissed claims that he financially benefited from the cryptocurrency.
Milei maintained that he acted in “good faith” and had “nothing to hide.” However, he acknowledged the need to establish clearer boundaries to prevent similar issues in the future. He also emphasized that the Argentine government had no involvement in the LIBRA meme coin’s rise or fall, asserting: “The state plays no role here.”
Also read: Pump.fun Demands Tougher Token Launch Rules After LIBRA’s $4.4B Collapse
What’s Next?
With fraud allegations mounting, the LIBRA meme coin scandal could have lasting implications for Milei’s presidency. His credibility, both domestically and internationally, may suffer as Argentina grapples with economic turmoil.
Regulatory bodies, political analysts, and crypto investors are closely watching the case to determine whether this is a politically motivated attack or a serious warning sign for the Milei administration.
