Javier Milei Under Scrutiny Over Cryptocurrency ‘$LIBRA’ Promotion

Argentinian President Javier Milei is facing increased scrutiny following his promotion of the cryptocurrency ‘$LIBRA,’ which subsequently experienced a significant drop in value. This situation has ignited controversy, with opposition parties calling for a parliamentary investigation and raising the possibility of an impeachment trial, alleging Milei’s involvement in what they describe as a scam. The situation has also drawn criticism from Venezuelan leaders, who have labeled it a “historical scam.”

A legal complaint has been filed in the U.S. against Milei and others involved in ‘$LIBRA,’ alleging a “massive fraud” affecting both Argentinian and American investors. The complaint urges the U.S. Department of Justice to investigate Milei’s role, citing past instances of him promoting alleged scams. Milei initially supported ‘$LIBRA,’ claiming it would fund Argentinian businesses, but later distanced himself from the project.

Hayden Mark Davis’s Involvement

Hayden Mark Davis, an American businessman, has identified himself as an advisor to Javier Milei. Davis stated he met with Milei in January to discuss the launch of the cryptocurrency ‘$LIBRA.’ Following Milei’s promotion, the cryptocurrency’s value plummeted, leading to a scandal in which Davis claims to be a “victim.”

In a video released through his company, Kelsier Ventures, Davis asserted, “I am, effectively, an advisor to Javier Milei. I am working with him and his team on larger tokenizations and great things for Argentina.”

Davis acknowledged his connection to the ‘$LIBRA’ project and admitted to possessing at least some of the invested funds. He expressed reluctance to transfer these funds to individuals close to the Argentinian president and offered to reinvest approximately $100 million in the cryptocurrency.

Government’s Response

The Casa Rosada (the seat of the executive branch in Argentina) has denied that Davis is an advisor to Milei, stating that he has never had any association with the Argentinian government.

Davis, in an interview with cryptocurrency-focused YouTuber Stephen Findeisen, stated that “Milei did not make money from this” and that ‘$LIBRA’ was intended to be an “experiment.”

Milei’s Actions and Davis’s Claims

Davis commented on Milei’s decision to remove his post on X (formerly Twitter) promoting the launch of ‘$LIBRA,’ saying, “I don’t know why he deleted the publication. I assume he panicked due to political pressure.” Davis described the decision as “abrupt” and made “without prior notice,” further alleging that the removal of the post “directly contradicted prior guarantees.”

Davis stated, “I am absolutely the victim of this situation. I am not going to make a financial profit.” He added that he is awaiting responses and a “real and concrete plan” from the Argentinian government to resolve the situation, which has left tens of thousands of investors harmed.

Kelsier Ventures

Kelsier Ventures presents itself as a crypto investment company on its website and social media, but does not provide information about its staff, associates, or Davis himself. Davis has, however, made public statements through the company’s social media channels.

Davis’s Role in the Project

According to Davis, his role in the project was to provide the technological infrastructure for the digital currency on the day of its launch and to “ensure liquidity for the project and maintain control over the funds and associated costs.”

‘$LIBRA’s Brief Surge and Subsequent Collapse

During the brief period that Milei’s posts about ‘$LIBRA’ were active on social media, demand surged, its price inflated, and millions of dollars in transactions occurred. Before its collapse, initial investors began withdrawing profits totaling $87.4 million.