#What Connections Does Javier Milei Have to the LIBRA Meme Coin Scandal?
Javier Milei, the President of Argentina, is now under scrutiny regarding potential connections to the LIBRA meme coin scandal. Recently uncovered phone logs reveal that he had multiple communications with entrepreneur Mauricio Novelli, both before and after endorsing the LIBRA token, which launched on February 14, 2025.
These phone records indicate that Milei engaged in seven calls with Novelli during critical times surrounding the launch, suggesting deeper involvement than he previously acknowledged. Novelli, viewed as a pivotal player in the cryptocurrency scandal, is alleged to have orchestrated Milei's promotion of LIBRA and facilitated transactions worth millions, including a purported $5 million deal linked to Milei's endorsement.
Additionally, audio messages exchanged over WhatsApp hint at ongoing payments directed to Milei while he served as a congressman. These messages also reference funds intended for his sister, Karina Elizabeth Milei. Notably, draft documents found on Novelli's device outline various schemes for payments contingent on Milei's public endorsement of particular consultants. However, there has been no verification that actual money changed hands.
#How Did Their Relationship Begin?
The ties between Milei and Novelli reportedly date back to the financial struggles caused by the pandemic, when Novelli approached Milei with offers of support and online trading courses through his firm, N&W Professional Traders. Investigators have noted that Milei began receiving monthly payments from Novelli during this period, indicating a growing relationship. By the time Milei took office, Novelli appeared to hold significant trust and access to both him and his sister.
Experts deducing information from Novelli's devices suggest he acted as an intermediary for obtaining approvals, tax benefits, and other regulatory advantages, all while leveraging Milei's public image for personal gain.
#What Impact Did LIBRA Have on Investors?
The LIBRA token, launched by Kelsier Ventures, briefly saw its market cap soar to nearly $4.6 billion following Milei's endorsement. However, the token's value plummeted by approximately 85% amidst allegations of a rug pull by its development team, leading to Milei's withdrawal of support. The fallout has been severe for investors, with estimated losses ranging between $251 million and $400 million. Reports reveal that only a small number of wallets profited significantly, while a staggering number of investors faced financial setbacks.
Milei continues to assert that his involvement was limited to drawing attention to a private investment opportunity. He maintained that the negative impact primarily affected a minority of investors, most of whom were foreign professionals. Following the emerging scandal, Milei disbanded the Investigation Task Unit that was examining the LIBRA token under a decree in May, which had been coordinating with various financial and anti-corruption authorities.
#Conclusion
As public interest continues to grow regarding Milei's connections to the LIBRA scandal, the implications for both his administration and the investors involved remain to be seen. Investors should remain vigilant and informed as this situation unfolds, considering the potential for ongoing developments in the regulatory landscape regarding cryptocurrency and high-profile endorsements.