Milei's alleged involvement in LIBRA's $5M transaction promotion: New evidence emerges, token price surges then crashes by 94%.

Key findings : Argentine President Javier Milei is suspected of profiting $5 million by promoting the LIBRA memecoin. Newly recovered draft documents from crypto lobbyist Mauricio Novelli's phone reveal a three-phase payment agreement totaling $5 million, directly linked to Milei's X post. This event triggered a surge in LIBRA's market capitalization to $4 billion on February 14, 2025, followed by a 94% crash, with the project team cashing out $107 million across eight wallets. A new forensic report (March 13-15, 2026) strengthens the evidence of coordinated communications, but Milei denies involvement, and the investigation is ongoing. (Cointelegraph )

This report, compiled from recent media reports, reveals the timeline of events, payment details, and market impact. Lacking current LIBRA prices or on-chain data, a long-term impact cannot be assessed, but the resurgence of the scandal could exacerbate political pressure.

Background of the event and the collapse of LIBRA

On February 14, 2025, Milei released the LIBRA (Solana chain memecoin) contract address on X, driving the token's market capitalization from zero to a peak of $4 billion . It then plummeted 94% within hours, wiping out hundreds of millions of dollars in investor funds. The project team allegedly cashed out $107 million through eight linked wallets, sparking congressional investigations and calls for impeachment. (Cointelegraph)

Milei initially claimed she was merely "spreading information," not promoting anything; in June 2025, Argentina's anti-corruption office ruled her posts were a personal act and did not violate any public ethics rules. However, new evidence refutes her claim of "copying the contract address from the internet"—a congressional witness confirmed the address was not publicly available at the time. The Block

Why it matters : This case exposes the risks of politicians promoting memecoins, and the collapse of LIBRA highlights the rug pull model under the "celebrity effect." Similar events (such as Melania Trump coin) show that political endorsement can instantly amplify market value, but a lack of basic disclosure can easily lead to disaster.

New evidence: Novelli phone draft documents

Two notes recovered from Novelli's iPhone by DATIP (Technical Support for Criminal Investigations), an agency under the office of Argentine prosecutor Eduardo Taiano, have become key evidence. The documents were exclusively disclosed by El Destape (March 15, 2026). El Destape via Cointelegraph

Suspected $5M payment structure (draft, February 11, 2025, written in English)

• The opening line reads: "Hello friends, This is the final agreement discussed with H" (H is suspected to refer to Hayden Davis, CEO of Kelsier Ventures and the mastermind behind LIBRA).
• The recipient was not explicitly identified, but El Destape speculated that it included the Milei siblings and intermediaries (Novelli, Manuel Terrones Godoy, and Sergio Morales).
• The amount matches earlier allegations by Argentine businessman Diógenes Casares (senior officials received $5 million), but he was not summoned. The Block

Crisis Response Notes (February 16, 2025)

Another Spanish note reads: "This is what I want for the tweet. This is the only thing that saves him, me, and us." The draft supports the LIBRA project, denies financial involvement, and blames political opponents. It is suspected to be a script for Milei's social media/interview. (Cointelegraph)

Communication Timeline: Signs of High Coordination

Novelli (then in Dallas, USA) acted as a "central node," frequently communicating with the Milei circle. Evidence obtained by La Nación (March 13, 2026) shows at least five two-way messages before and after the post. DL News

This pattern suggests premeditation, not chance. Novelli also coordinated Milei's response in the Jony Viale interview, discussing "what to say/what to hide." DL News

Current Status and Impact of the Survey

• Congress : In November 2025, it was determined that Milei provided “critical cooperation” and recommended an assessment of misconduct.
• Criminal : Novelli equipment has been seized during the federal investigation; a class-action lawsuit is underway in the United States.
• Milei responded : She continues to deny the allegations; she has been cleared of corruption, but new evidence may reopen the investigation.
• Market signals : The resurfacing scandal did not elicit an immediate reaction from LIBRA (no current price data available), but increased caution is evident in the memecoin sector. Decrypt

Data limitations : This report is based on news reports and lacks real-time on-chain/TVL/position data for LIBRA, making it impossible to quantify current risks. The event occurred over a year ago, and the focus is on politics rather than trading.

Inspiration and Prospect

This case serves as a stark warning of the high risks associated with political endorsements of cryptocurrencies: a sudden explosion in market capitalization can easily turn into a rug pull, resulting in heavy losses for investors. The role of intermediaries like Davis highlights the problems within the lobbying chain. In the short term, progress in the investigation may trigger a sell-off by LIBRA remnants; in the long term, if convicted, it could impact cryptocurrency regulation in Argentina.

Action recommendations :

• Avoid celebrity endorsements of memecoin; prioritize checking the transparency of the contract and team.
• Monitoring Argentine congressional hearings could signal a potential policy shift.

The report data is current as of March 15, 2026; further developments require continuous monitoring. (TradingView)