Argentine President Javier Milei is embroiled in a memecoin scandal after promoting a cryptocurrency project called $LIBRA, which was accused of being a pump-and-dump scheme. Following Milei’s endorsement on Elon Musk’s platform X, the token’s market capitalization surged to $4 billion before crashing, wiping out millions in value. A report by CoinDesk alleges that Hayden Davis, the creator of $LIBRA and CEO of Kelsier Ventures, claimed he could “control” Milei due to payments made to Karina Milei, the president’s sister and a prominent government figure. Davis reportedly stated, “I send $$ to his sister and he signs whatever I say and does what I want.”
Milei’s government has denied any official connection with Davis, and investigations are underway into both the $LIBRA project and allegations of fraud involving Milei. The Anti-Corruption Office is probing the matter, while crypto wallets linked to Davis and Kelsier Ventures reportedly gained over $100 million during $LIBRA’s volatile trading.
Milei, a libertarian leader admired by right-wing circles, has implemented policies deregulating Argentina’s housing market, exacerbating poverty and homelessness. His economic strategies, influenced by U.S.-based libertarian networks, have drawn criticism domestically. Meanwhile, the scandal highlights concerns about the intersection of cryptocurrency and governance, particularly as global leaders explore decentralized finance.
— news from Gizmodo