Allegations of Control Over Argentine President by Libra Token Backer

A key player behind the Libra token bragged about buying access to Argentine President Javier Milei’s inner circle months before the memecoin’s scandalous launch and crash.

In text messages reviewed by CoinDesk, Hayden Davis, CEO of Kelsier Ventures, claimed he could “control” Milei because of payments he had been making to Karina Milei, a powerful figure in Milei’s government and the president’s sister.

> “I control that n****,” Davis claimed in mid-December text messages, adding, “I send $$ to his sister and he signs whatever I say and does what I want.”

Karina Milei’s office did not respond to a request for comment. Davis did not respond to multiple requests for comment.

It was unclear if any money was exchanged between Davis and Milei’s inner circle in advance of Libra’s launch.

Davis’ December claims add a new dimension to an anti-corruption probe that Argentina’s presidential office has opened into Javier Milei, who, on Feb. 15, brought attention to the doomed Libra crypto as a novel way to fund small businesses in that country.

However, the biggest winner from the Solana-based memecoin’s launch was Davis and Kelsier Ventures, whose wallets reportedly netted over $100 million in Libra’s early hours, when it soared to $5 before crashing over 95%, wiping out millions of dollars of speculative investments.

Opposition leaders in Argentina have threatened to call for an impeachment trial over the incident, which local press has coined, “cryptogate.” This scandal is weighing on Argentina’s stock market and has pushed Milei into “damage control,” according to observers in the country’s crypto space.

In the December messages, Davis claimed he could persuade Milei to promote ventures on social media. Milei’s tweet about Libra two months later fueled its rise. When he deleted the tweet after just five hours – and after on-chain sleuths discovered evidence of shady dealings – Libra’s price had already crashed.