Unveiling the Crypto Scandal and Financial Transactions

Recent forensic analyses and court document leaks have unveiled a series of dollar payments from Mauricio Novelli, a prominent lobbyist for the cryptocurrency Libra (LIBRA), directed towards Argentina’s President Javier Milei and his inner circle. These transactions date back to before the notorious memecoin collapse, highlighting a complex web of financial interactions.

Sneak Peek into Forensic Evidence

Over a year has passed since accusations of insider trading rattled Argentina and the global crypto community. New evidence suggests that Novelli made substantial payments to Milei as early as 2021, during his tenure as a congressman. The transactions were reportedly for Milei’s educational services and promotional activities for Novelli’s investment firm, as reported by Argentinian media outlet La Nación.

Financial Trail and Payment Mechanism

Prosecutors have unveiled messages and audio files indicating that Novelli funded these payments using cryptocurrencies. He converted assets like USDT into cash, subsequently handing over physical dollars to Milei and his associates. Initially, payments were pegged at $2,000 monthly but increased to $4,000 when Milei assumed the presidency in 2023, with his sister and chief of staff, Karina Milei, as the recipient.

New Findings in the LIBRA Case

The forensic analysis of Novelli’s phone has revealed a multitude of findings that have emerged over the past week. On March 14, El Destape, a local news outlet, reported the discovery of documents that include coordinated communications between Milei, his sister Karina, strategist Santiago Caputo, and LIBRA promoters. These interactions occurred around the time Milei publicized the Libra smart contract in February 2025.

Intriguing Memos and Strategies

A notable document titled the “5 million memo” from Novelli’s notes app mentioned a potential $5 million package for Milei’s social media promotion and political support of Libra. Although no signed contract has been found, this document positions Milei as a pivotal “asset” for the project. Additionally, a public statement draft in Spanish, dated February 16, 2025, emerged, likely intended for Milei’s social media or an upcoming interview with Jonatan Viale, as reported by Clarín.

The Political Ramifications of Crypto Turmoil

In February 2025, Milei endorsed the $LIBRA token as a means to empower Argentinian entrepreneurs. This endorsement led to a dramatic 1,300% price surge, followed by a catastrophic crash, causing substantial financial losses for late investors, totaling around $100 million. The incident ignited criminal complaints, a congressional probe, and accusations against the president of exploiting his position to promote a risky crypto asset.

Political Reactions and Investigations

Opposition members in Argentina’s lower house have convened a press conference, aiming to revive the special Libra commission in Congress after recent leaks. They accuse Milei of being a crucial participant in a pre-planned crypto fraud. Maximiliano Ferraro, chairman of the Investigative Committee, declared that the evidence confirms Milei’s political culpability and deliberate involvement. He emphasized that the president must face legal and congressional scrutiny.

A Crypto Hub Dream and Regulatory Discussions

Despite the ongoing scandal, the presidency insists that Milei promoted Libra “in good faith” without full project details. Officials dismiss media leaks as biased and flawed. As Argentina positions itself as a crypto hub, policymakers are deliberating the extent of digital-asset regulations and banking sector involvement. For traders, the episode underscores that politically branded tokens like Libra entail significant risks, whereas established cryptocurrencies and stablecoins are likely to remain preferred options for hedging against local economic volatility.