Blockchain & AI for Argentina’s Government: Milei’s Review & Taiano’s Investigation

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Argentine federal prosecutors have confirmed that President Javier Milei’s February 2025 endorsement of the now-defunct $LIBRA cryptocurrency token was directly tied to a $5 million financial arrangement with crypto entrepreneur Mauricio Novelli, contradicting Milei’s repeated denials of involvement. The revelation stems from recovered phone logs and deleted notes obtained during the ongoing Criptogate investigation, which has exposed widespread corruption in Argentina’s crypto sector.

Phone records show Milei exchanged seven calls with Novelli—one of the architects of $LIBRA—on the same night he posted the controversial X (formerly Twitter) endorsement at 7:01 p.m. Local time on February 14, 2025. The deleted note from Novelli’s phone, recovered by prosecutors, outlines a structured payment plan: $1.5 million upon Milei’s appointment of Hayden Davis, a Kelsier Ventures advisor, as a cryptocurrency consultant to the Argentine government. Additional payments were contingent on Milei’s public endorsements of $LIBRA and related projects.

The discovery underscores the extent of Milei’s involvement in the crypto scheme, which collapsed shortly after its launch, leaving an estimated 114,410 wallets with losses ranging from $251 million to $400 million. Only 36 wallets cleared profits exceeding $1 million, according to forensic reports cited in the investigation. The case has intensified scrutiny over Milei’s economic policies, particularly his promotion of cryptocurrencies amid Argentina’s deepening financial crisis.

Technical and Regulatory Implications

The $LIBRA token, marketed as a stablecoin pegged to the U.S. Dollar, was launched under controversial circumstances. Its collapse exposed vulnerabilities in Argentina’s unregulated crypto market, where stablecoins and tokens often bypass traditional financial safeguards. The scandal has reignited debates about the need for stricter oversight of digital assets, particularly in jurisdictions with weak anti-money laundering (AML) and know-your-customer (KYC) frameworks.

From a technical standpoint, the $LIBRA project’s failure highlights the risks of decentralized finance (DeFi) platforms operating without clear legal or regulatory guardrails. While proponents argue for self-regulating ecosystems, the Argentine case demonstrates how political endorsements can accelerate market manipulation, particularly when tied to opaque financial incentives. The recovered documents suggest that Milei’s endorsement was not merely a public relations move but part of a coordinated effort to legitimize $LIBRA’s liquidity and attract retail investors.

Broader Context: Criptogate and Argentina’s Crypto Corruption

The Criptogate investigation, led by Argentine prosecutors, has already implicated multiple high-profile figures in kickback schemes involving crypto projects. The latest revelations about Milei’s role add a new layer to the scandal, linking the president’s economic agenda directly to the financial incentives of crypto promoters. The case has drawn comparisons to earlier controversies, such as the 2021 collapse of the Bitcoin Argentina exchange, which also involved alleged insider deals and regulatory evasion.

Legal experts warn that the Milei-Novelli arrangement could violate Argentina’s anti-corruption laws, particularly if the payments were made in exchange for official endorsements rather than legitimate consulting services. The investigation is now focusing on whether Milei’s office or related entities received any portion of the $5 million, a detail that remains unverified in public reports.

What Comes Next?

Prosecutors have not yet announced formal charges against Milei or Novelli, but the evidence suggests a potential criminal case under Argentina’s corruption and money-laundering statutes. The political fallout could further destabilize Milei’s administration, which has already faced backlash over economic austerity measures and perceived ties to unregulated financial schemes.

For the broader crypto industry, the case serves as a cautionary tale about the risks of political endorsements in volatile markets. While stablecoins and DeFi projects continue to gain traction globally, the Argentine scandal reinforces the need for transparent governance—particularly in jurisdictions where regulatory oversight is lacking. The investigation’s outcome may also influence how other governments approach crypto partnerships, with a growing emphasis on due diligence and conflict-of-interest disclosures.

As the Criptogate probe deepens, one question remains unresolved: whether Milei’s endorsement of $LIBRA was a genuine belief in crypto innovation or a calculated move to benefit from its speculative hype. The recovered documents suggest the latter, but the full extent of the financial transactions—and their impact on Argentina’s economy—remains under investigation.