Argentine President Milei Allegedly Tied to $5M Libra Scheme That Wiped Out 40,000 Investors

Argentine investigators have recovered a document from a crypto lobbyist's phone that outlines an alleged $5 million payment structure connected to President Javier Milei's promotion of the LIBRA memecoin in February 2025, according to local publication, eldestape. The file was reportedly found on the phone of lobbyist Mauricio Novelli during a forensic examination of seized devices and has become central to a broader judicial investigation into the token's rise and collapse.

What Is the LIBRA Memecoin and How Did It Collapse?

LIBRA is a Solana-based memecoin that surged in February 2025 after Milei promoted it in a social media post on X. A memecoin is a cryptocurrency that typically lacks a defined utility and often relies on social media attention or celebrity endorsements for its price movement. Within hours of Milei's post, LIBRA reached a market capitalization above $4 billion before losing more than 90% of its value, wiping out approximately $250 million from more than 40,000 retail investors.

Blockchain data cited in earlier reports showed eight wallets associated with the project collectively withdrew about $107 million. The crash prompted opposition lawmakers in Argentina to call for Milei's impeachment. Milei later said he had merely "spread the word" about the token rather than formally promoted it.

What Does the Recovered Document Say?

The document was reportedly created on February 11, 2025, three days before Milei's social media post about LIBRA went live. It was written in English and begins with the phrase "Hello friends, this is the final agreement discussed with H." Investigators believe "H" refers to Hayden Davis, the CEO of Kelsier Ventures and the creator of the LIBRA token.

The document outlines a three-stage payment structure totaling $5 million:

• $1.5 million in liquid tokens or cash as an advance payment
• $1.5 million in liquid tokens or cash upon Milei publicly announcing on X that Hayden Davis or Kelsier Ventures serves as his adviser
• $2 million in tokens or cash upon a formal consulting contract being signed in person with Milei, covering blockchain and AI services for the Argentine government, subject to review by both Milei and his sister Karina Milei

The document does not specify who would receive the funds. However, Argentine outlet El Destape reported that the total amount appeared to correspond to payments intended for individuals connected to the president and intermediaries including Novelli, Manuel Terrones Godoy, and Sergio Morales.

Background on Hayden Davis and Kelsier Ventures

Davis had previously met with Milei and Karina Milei at the Casa Rosada, Argentina's presidential palace, according to reports. One of those meetings reportedly took place on January 30, 2025, roughly two weeks before the document was created. Shortly after that meeting, Novelli reportedly celebrated what he described as a major deal.

What Do the Call Records Show?

Forensic analysis of Novelli's devices also recovered call logs showing communications between Novelli and Milei in the minutes surrounding the LIBRA post. Milei published his post about the token at approximately 7:01 p.m. Argentine time on February 14, 2025.

Records show the two exchanged several calls between 6:54 p.m. and 7:03 p.m. Shortly afterward, Novelli attempted to reach Karina Milei, who returned the call at 7:17 p.m. for a conversation lasting more than two minutes.

Later that evening, as LIBRA's price began falling, Novelli's calls expanded to include presidential adviser Demian Reidel, Julian Peh of KIP Protocol, and senior adviser Santiago Caputo. Calls between Novelli, Caputo, and Peh reportedly continued past midnight.

A Second Document Drafted After the Collapse

Investigators also recovered a separate note dated February 16, 2025, two days after the controversy spread online. The document appears to contain a draft public statement, preceded by the phrase "this is the only thing that saves him, me, and us." 

The draft reportedly expressed support for the LIBRA project while denying financial involvement and attributed accusations of wrongdoing to political opponents. Authorities believe the message may have been prepared for Milei to post on social media or reference in an interview.

What Has Milei Said About the LIBRA Allegations?

Milei has maintained that he played no financial role in the LIBRA project and described his post as sharing information rather than endorsing the token. The investigation is ongoing. 

The recovered documents have not been confirmed as final agreements or signed contracts. The draft note recovered from Novelli's phone does not carry a named recipient for the $5 million, and no charges have been publicly confirmed against Milei as of this writing.

Conclusion

The investigation into the LIBRA collapse centers on three things: a document outlining a $5 million payment structure, call records placing Novelli in contact with Milei minutes before the token was promoted, and a draft crisis statement written two days after the crash. None of these documents have been confirmed as signed agreements, and no charges against Milei have been publicly filed. What is confirmed is that more than 40,000 retail investors lost money, eight wallets pulled out $107 million, and the paper trail recovered from a lobbyist's phone keeps pointing back to the same names.

Resources 

1. Report by eldestape: Exclusive: A document recovered from Novelli's cell phone reveals a $5 million pact for Milei's support of $LIBRA

2. Report by DW: Argentina's Milei faces credibility crisis over crypto scam

3. Report by AP News: Argentine lawyers accuse President Milei of fraud over cryptocurrency promotion

4. Lookonchain on X: Post on February, 15, 2025