Reportedly, Libra's Cryptocurrency Architect Allegedly Declared Possessing Influence Over Argentina's President Javier Milei
The controversial Argentine president, Javier Milei, is currently grappling with his most significant crisis yet. It's not stemming from his economic policies, which, despite a minor recovery recently, have predominantly exacerbated issues like poverty, homelessness, and unemployment in the country. Instead, the uproar is due to a memecoin scandal that has upset prominent American investors who had invested in the project and are now vocalizing their displeasure online.
The storm began when Milei impulsively endorsed a memecoin project, a cryptocurrency token named $LIBRA, on Elon Musk's platform, X. In a short span, the asset skyrocketed in value following Milei's endorsement, reaching a staggering market capitalization of around $4 billion. Milei suggested that investing in the coin could be an innovative method to support small businesses. However, the coin's value subsequently plummeted, leading to the evaporation of tens of millions of dollars worth of investments.
A recent report from CoinDesk claims that the $LIBRA project's creator, Hayden Davis, boasted about having control over Milei. Davis allegedly made this claim in text messages shared with CoinDesk, stating, "I control that n*. I send $$ to his sister, and he signs whatever I say and does what I want." Davis, who runs Kelsier Ventures, has also declared that he serves as Milei's advisor and has been assisting him and his team on larger tokenization projects in Argentina. However, Milei's administration has previously denied Davis' claims of any official connection.
CoinDesk further scrutinizes the allegations, citing text messages where Davis reportedly claimed control over Milei because of payments he had made to Milei's sister, Karina Milei. The report raises uncertainties about the nature of these payments and their purpose, but it suggests that Davis and Kelsier Ventures were significant beneficiaries of Milei's recent announcement, securing over $100 million in crypto wallets. Consequently, Milei is now under investigation by Argentina's Anti-Corruption Office for fraud allegations. Additionally, the government has announced an investigation into $LIBRA and "all companies or persons involved in its operation."
Milei, a reputable figure in right-wing circles, has gained recognition due to his libertarian economic policies, labeling himself as an "anarcho-capitalist." His policies have permitted wealthy foreign investors to exploit Argentina's market, leading to the deregulation of the housing market and a surge in housing prices. While Western outlets celebrated this move, poverty and homelessness have exacerbated since Milei implemented his "shock treatment" policies, which he describes as using a chainsaw to affect change in the nation's government. Much of his policy-making has been influenced by a libertarian network based in the US, Atlas.
The controversy surrounding Milei and the $LIBRA memecoin scandal raises concerns about the influence of crypto zealots in governmental decision-making and its potential impact on the economy, particularly in light of President Trump's recent appointments of pro-crypto advocates.
- The tech community has shown interest in the ongoing controversy surrounding Argentine President Javier Milei and the $LIBRA memecoin, as it highlights the potential impact of cryptocurrencies on future political and economic landscapes.
- The scandal has shed light on the role of tech oligarchs, such as Hayden Davis, who allegedly have substantial control over influential figures like President Milei, raising questions about ethics and transparency in the tech industry.
- The Argentine government's decision to investigate the $LIBRA project and its associated individuals signifies a broader shift in the perception of cryptocurrencies, with regulators increasingly focusing on their potential for misuse and manipulation.
- Javier Milei's ongoing crisis could set a precedent for future interactions between political figures and tech leaders, particularly in the realm of cryptocurrency, as the future of digital currencies becomes increasingly intertwined with global politics.
