In a development that has sent shockwaves through Argentina’s political and financial spheres, Hayden Davis, co-creator of the controversial cryptocurrency Libra, is alleged to have boasted about making payments to Karina Milei, sister and close advisor to President Javier Milei. These claims have surfaced amid a broader investigation into the president’s promotion of the now-collapsed memecoin.
Text messages purportedly sent by Davis in December 2024 suggest he had significant influence over President Milei through financial dealings with Karina Milei. In these messages, Davis allegedly stated, “I send $$ to his sister and he does whatever I say and does what I want.” These communications were reportedly reviewed by multiple media outlets, including CoinDesk and El País.
Karina Milei, who holds the position of General Secretary of the Presidency, is known for her influential role in her brother’s administration. She has been a prominent figure alongside President Milei during official engagements and policy deliberations. The allegations suggest that Davis believed his financial interactions with her granted him sway over presidential decisions.
In response to these claims, Davis has denied any wrongdoing. Through a spokesperson, he stated that he does not recall sending such messages and has no record of them on his device. He further emphasized, “I never made any payments to them, nor did they request any. Their only concern was ensuring proceeds from Libra would benefit Argentina’s people and economy.” This statement was reported by CoinDesk.
The controversy intensified when President Milei promoted the Libra token on social media in mid-February 2025. He described the cryptocurrency as an innovative tool to support small businesses in Argentina. However, shortly after his endorsement, the token’s value plummeted by over 90%, leading to significant financial losses for investors. This rapid decline has been characterized by some financial analysts as a “rug pull,” a term used to describe a scenario where a cryptocurrency’s creators abruptly withdraw, taking investors’ funds with them.
The political ramifications have been swift. Opposition leaders have called for an impeachment trial, accusing President Milei of engaging in fraudulent activities and compromising the integrity of his office. Federal Judge María Romilda Servini has been assigned to lead the investigation into the matter, as reported by Reuters. The judiciary is examining whether the president’s actions constitute fraud or other criminal offenses.
The scandal has also had a tangible impact on Argentina’s financial markets. The S&P Merval, the country’s primary stock index, experienced a significant drop of nearly 4% following the emergence of the controversy. This decline reflects investor apprehension regarding the potential economic and political instability resulting from the incident.
President Milei has addressed the nation, denying any misconduct and asserting that his promotion of the Libra token was intended solely to explore alternative financial solutions for Argentina’s struggling economy. He stated, “I did not promote that. What I did, I spread the word,” during an interview with Todo Noticias, as reported by CoinDesk. Despite these assertions, the president faces mounting scrutiny from both the public and political adversaries.
The role of Karina Milei in this unfolding situation remains a focal point of the investigation. As a trusted advisor and integral member of the president’s inner circle, any substantiated evidence of her involvement in unethical financial transactions could have profound implications for the administration. To date, neither Karina Milei nor her office has issued a public response to the allegations.
Arabian Post – Crypto News Network
