There has been some more craziness that took place in the Libra memecoin scandal. Hayden Davis, co-creator of the token, allegedly bragged in leaked text messages that he had “control” over Argentine President Javier Milei through payments made to his sister, Karina Milei, a key government figure. According to CoinDesk, Davis claimed in December, “I send $ to his sister and he signs whatever I say and does what I want.”
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This revelation adds a new layer of controversy to Argentina’s anti-corruption investigation into the Milei administration, which has already faced backlash over its handling of Libra. The token, which Milei briefly endorsed on February 14, soared to a $4.5 billion market cap before crashing 95% in hours.
Political Fallout and Possible Impeachment Talks Intensify
Milei’s decision to delete his Libra endorsement post just five hours after publishing it triggered market panic and fueled speculation about insider involvement. According to CoinDesk, wallets linked to Davis and his firm, Kelsier Ventures, cashed out over $100 million before Libra’s collapse, leaving retail investors devastated.
Opposition leaders in Argentina are now threatening impeachment proceedings against Milei, calling the scandal “Criptogate.” Argentina’s stock market fell 6% following news of an official probe, according to local reports.
Davis Denies Payments and Calls Accusations a “Political Attack”
After the leaked messages surfaced, Davis denied making any payments to the Milei family. In a statement to CoinDesk, his spokesperson claimed, “I never made any payments to them, nor did they request any. This is nothing more than a politically motivated attack on President Milei.”
Karina Milei’s office declined to comment on the allegations. Meanwhile, the fallout from the Libra fiasco is raising serious concerns about the memecoin market, with industry insiders calling it a major setback for crypto’s reputation.
A Final Blow to the Memecoin Craze?
The Libra disaster follows a string of high-profile memecoin scandals, including tokens tied to Donald Trump and Melania Trump. According to FRNT Financial, this incident marks a turning point for memecoins, now widely seen as “pump and dump” schemes.
Crypto analyst Chris Chung warned that “if we want to attract new retail users, this is not the way to do it.” With Bitcoin and Ethereum now gaining institutional adoption, the memecoin market may finally be running out of steam.
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