Milei's Meme Coin Scandal: Alleged Influence Peddling Shakes Argentine Politics

Javier Milei, a prominent Argentine economist and presidential candidate, has found himself at the center of a controversy involving a meme coin and alleged influence peddling. According to a report by CoinDesk, Hayden Davis, the co-creator of the LIBRA memecoin and CEO of Kelsier Ventures, allegedly bragged about controlling Milei through payments made to his sister, Karina Elizabeth Milei.

Davis's messages, reviewed by CoinDesk, reportedly stated, "I send $$ to his sister and he signs whatever I say and does what I want." This claim suggests a potential conflict of interest, as Milei's endorsement of the LIBRA token on social media on February 14, 2025, helped it reach a market capitalization of $4.5 billion. However, the token's value subsequently dropped by over 90% within hours, with insiders allegedly extracting more than $107 million in liquidity.

Davis previously acknowledged holding $100 million in profits from the token's launch, raising questions about his involvement and the transparency of the project. The US authorities are currently considering jurisdiction over the case due to Davis's American citizenship and US-based investor involvement. Blockchain analysts have also connected Davis to other failed memecoin launches, including the MELANIA token associated with former US First Lady Melania Trump.

The Argentine government has not officially responded to the CoinDesk report, and Karina Elizabeth Milei remains silent on the allegations. As the investigation into the matter continues, the public awaits further developments regarding the potential influence of Davis's actions on Milei's political career and the broader cryptocurrency landscape.