Hayden Davis, creator of the LIBRA token, is at the center of a scandal involving alleged influence over Argentina's president through his sister Karina Milei. The sudden market collapse of LIBRA has affected various aspects of the country's economy.
Allegations Against Davis
Anonymous sources cited by CoinDesk claimed that Hayden Davis boasted about his influence over Argentina's President Javier Milei by paying his sister, Karina Milei. Davis allegedly stated he could make Milei sign anything in exchange for payments to Karina Milei. Davis denied sending these messages, saying he has no record of them on his phone. His spokesperson later issued a statement denying Davis's involvement in such actions.
LIBRA: Rise and Fall
The LIBRA token was launched on the Solana blockchain and reached a market cap of $4.5 billion before crashing 95% within hours. Davis' firm, Kelsier Ventures, reportedly earned over $100 million from LIBRA's price movements. Blockchain analysis revealed that eight wallets associated with the LIBRA team withdrew $107 million before the token's collapse.
Milei's Response and Consequences
On February 14, Argentina's President Javier Milei promoted the LIBRA token on X, leading to a significant price surge. However, he deleted the post just hours later. In an interview, Milei denied any association with promoting the token, claiming he merely spread the word. Opposition leaders see Milei's actions as misleading investors and call for impeachment. The incident, known as 'Criptogate,' has put Argentina's financial markets at risk. The government's anti-corruption office initiated an investigation into officials linked to LIBRA.
The LIBRA situation has become a major event in Argentina, raising doubts about the integrity of the President and his entourage. Further investigation is needed to clarify these allegations and help restore trust in the country's financial system.
