Author: Shen Tide TechFlow

Shen Tide Introduction: The New York Times cited call records obtained by the Argentine federal prosecutor showing that President Milei spoke with key project figure Novelli seven times on the evening of February 14, 2025, when he released a promotional post for the LIBRA token. Investigators also found a draft payment agreement for a $5 million promotion on Novelli's phone. The market value of the token once surged to $4.6 billion before crashing over 90%, with approximately 114,000 wallets reporting losses totaling $251 million. The Argentine Chamber of Deputies has restarted the investigation committee, summoning government officials starting April 8.

Argentine President Javier Milei is facing the most severe political crisis since taking office.

According to The Block, The New York Times published an investigative report on April 6, revealing call records obtained by the Argentine federal prosecutor showing that Milei spoke with key intermediary of the LIBRA token project Mauricio Novelli seven times on the evening of February 14, 2025 T. This was the same night Milei released the LIBRA token contract address on the X platform, igniting this crypto scam. The calls occurred around the time of the promotional post release, directly overturning Milei's previous repeated claims of "having no connection to the project."

The token was created by American entrepreneur Hayden Mark Davis's Kelsier Ventures, with insiders controlling about 70% of the supply. After Milei's promotional post, the market value of LIBRA skyrocketed from near zero to about $4.6 billion within minutes and then crashed over 90% within hours. Nansen data shows that about 86% of trading participants reported losses, with approximately 114,000 wallets losing a total of about $251 million.

Draft of $5 million agreement surfaces, "personal behavior" defense collapses

Beyond the call records, investigators extracted more damaging evidence from Novelli's seized phone.

According to crypto.news, a judicial update in March disclosed that Novelli's phone contained a draft agreement related to a $5 million arrangement associated with the LIBRA promotion, drafted just three days before Milei's post. Although this document does not prove that Milei signed or actually received the payment, it contains a clear payment structure: a portion of the payment is contingent upon Milei publicly appointing Davis as a cryptocurrency advisor.

Computer experts also confirmed that the 44-character LIBRA contract code attached to Milei's promotional post did not appear on any public network channels prior to his post. This indicates that Milei obtained internal technical information before the token was publicly released.

Additionally, WhatsApp voice messages reviewed during the investigation show that Novelli regularly made payments to Milei even during his time as a congressman, with some payments directed toward Milei's sister, Chief of Staff Karina Milei. According to previous reports by Argentine investigative media El Destape, the related payments doubled in amount after Milei was elected president in 2023.

From "anti-corruption pioneer" to investigation target

This scandal has caused political damage to Milei far exceeding that of a typical crypto scam controversy. Milei is currently listed as a "person of interest" in the ongoing investigation by the federal prosecutor but has not yet been formally charged.

The Argentine Anti-Corruption Office ruled in June 2025 that Milei did not violate public ethics rules, determining that his promotional post was a personal action rather than an official one. However, this ruling now appears more as political cover than a legal conclusion. Subsequently, in May 2025, Milei disbanded the investigative working group (UTI) investigating the case by decree No. 332/2025—a move that occurred after the UTI had submitted the insider trading investigation results to the prosecutor. Even more telling is that just days before the disbanding order was signed, a judge had ordered the unsealing of bank account records for Milei and his sister.

In Argentina, the penalty for fraud ranges from 1 month to 6 years. Opposition lawmakers have filed an impeachment motion, and lawyers have formally accused Milei of fraud.

Congress restarts investigation, summoning government officials starting April 8

The exposure of new evidence quickly triggered a political chain reaction.

Opposition lawmaker Maximiliano Ferraro announced the establishment of a special committee to review the latest evidence. Ferraro stated at a press conference that the release and promotion of LIBRA were not spontaneous or coincidental actions but rather a premeditated and coordinated operation.

The Argentine Chamber of Deputies began summoning government officials for questioning on April 8, with expectations that key figures such as Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and Cabinet Chief Guillermo Francos would testify. However, Milei himself and Karina Milei are not on the initial summons list, and the opposition has indicated it will continue to press for their appearance.

On-chain data review: textbook example of a Rug Pull

On-chain data provides an accurate financial picture of this scandal.

At 6:58 PM Argentine time on February 14, 2025, Kelsier Ventures created the LIBRA token on the Solana chain. Three minutes later, at 7:01, Milei simultaneously posted promotional content on X, Instagram, and Facebook, attaching the token contract address. The price of LIBRA surged from $0.000001 to $5.20 within 40 minutes.

According to previous reports from The Block, eight wallets associated with the project cashed out about $107 million during the crash. Nansen data shows that only 36 wallets made profits of over $1 million each, with some wallets profiting as high as $70 million to $100 million. The Economist described this distribution pattern as consistent with insiders having prior knowledge of Milei's promotional post.

After the crash, Milei deleted the promotional post and claimed he "did not understand the details of the project." In November 2025, the Argentine congressional investigation committee determined that Milei provided "essential collaboration" for the project.

LIBRA scandal timeline

Key points are outlined as follows:

• January 30, 2025: Davis meets with Milei at the Argentine presidential office Casa Rosada, and Milei posts a selfie on X the same day, calling Davis a cryptocurrency advisor
• February 11, 2025: Draft date of the $5 million agreement in Novelli's phone
• February 14, 2025: LIBRA token created, Milei posts promotion, token skyrockets then crashes, Milei calls Novelli seven times that evening
• May 2025: Milei disbands the investigative working group UTI by decree
• June 2025: Anti-Corruption Office rules that Milei did not violate public ethics rules
• November 2025: Congressional investigation committee determines that Milei provided "essential collaboration"
• December 2025: According to Clarín, Davis had signed a confidentiality consulting agreement with the Argentine government
• March 2026: El Destape exposes the $5 million agreement draft and call records
• April 6, 2026: The New York Times publishes an investigative report, fully disclosing the call record details
• April 8, 2026: The Chamber of Deputies restarts the investigation, beginning to summon government officials