Investigations have intensified around Argentine President Javier Milei following revelations of multiple contacts between him and a key individual associated with the LIBRA token during its promotion phase. Reports indicate that Milei engaged in seven phone calls with crypto lobbyist Mauricio Novelli on the night he publicly endorsed the token on X in 2025. While the specifics of these conversations remain undisclosed, their timing is crucial to an ongoing federal investigation where Milei is considered a person of interest.
The LIBRA token saw a meteoric rise in value after Milei’s endorsement, briefly hitting a market capitalisation exceeding US$4 billion (AU$5.8 billion). However, its value plummeted by over 90% shortly after. Blockchain analysis revealed that eight wallets linked to the project withdrew US$107 million (AU$155.15 million), contributing to substantial investor losses. Overall estimates suggest that losses for investors may range between US$251 million and US$400 million (AU$363.95 million to AU$580 million), impacting over 114,000 wallet holders.
Additionally, investigators are scrutinising claims of financial arrangements tied to the token’s promotion, which include an alleged US$5 million (AU$7.25 million) deal connected to Milei’s endorsement. Documents retrieved from Novelli’s devices hint at potential payments, though it remains unverified whether any funds were actually transferred.
Milei has vociferously denied any allegations of misconduct, asserting that his role was simply to promote a private initiative rather than providing formal backing. Nonetheless, a congressional committee has previously stated that he rendered “essential collaboration” to the LIBRA project, prompting calls for a more thorough examination of his involvement.
The situation raises significant questions about the intersection of politics and cryptocurrency, particularly concerning the responsibilities of public officials when endorsing financial projects that may impact thousands of investors. As the investigation unfolds, the implications for Milei and the broader crypto landscape in Argentina continue to develop, with many in the financial community watching closely.
