The 'Criptogate' Scandal in Argentina: CEO Hayden Davis Reveals 'Control' of President Javier Milei

A storm of controversy erupted in the financial and political circles of Argentina when Kelsier Ventures CEO Hayden Davis was alleged to have revealed in leaked messages that he had "full control" over President Javier Milei. According to leaked reports reportedly disclosed by CoinDesk, Davis claimed he could influence Milei's actions by transferring funds directly to Karina Milei - the president's sister and senior advisor. Proud Words of Hayden Davis In a highly controversial message, Hayden Davis admitted: "I'm in control of that guy. I sent money to his sister and he signed everything I said, doing as I pleased." This statement has raised questions about the relationship between private finance and political power in Argentina, as the government is facing a corruption investigation related to a $4.6 billion scandal in the $LIBRA deal. The Collapse of $LIBRA - The Meme Currency of the Era Just a few months after Hayden's statements, President Javier Milei shared on social media about $LIBRA - a meme currency based on the Solana platform, promoted as a tool to support small businesses in Argentina. However, this event quickly turned into a disaster: Boom and Bust: After Milei's tweet, the price of $LIBRA skyrocketed to $5 in just a few minutes, but within 9 hours, this currency plummeted more than 95%, dropping to only $0.38. This collapse has vaporized hundreds of millions of dollars of individual investors' capital. Hayden's 'Fateful Transaction:' On-chain data shows that wallets controlled by entities related to Hayden Davis withdrew over $100 million in the first hours of $LIBRA trading - before the coin experienced a significant price drop. Meanwhile, small investors suffered heavy losses. Investigation and Political Reaction This scandal has rocked the Argentine financial market and fueled a wave of political criticism. Opposition parties have called for an official investigation into the possibility of insider trading related to this deal, with some even suggesting impeaching President Milei. The Inaugural Speech of President Javier Milei In an interview with Todo Noticias, President Javier Milei spoke out affirming that he acts entirely for the benefit of the business community: Hayden Davis has proposed a funding structure for entrepreneurs who cannot access capital. When $LIBRA was announced, I only shared information, not for personal gain. Milei said: He only 'shares' information about $LIBRA rather than actually 'promoting' or making investment recommendations. The number of affected investors is significantly lower than the initial report (, estimated to be only about 5,000 people, mainly volatile traders from China and the U.S., not the people of Argentina). His deleted tweet was simply due to the 'wrong timing' and the promises made before he became President still have an impact. Addressing Dave Portnoy: The Responsibility of the Milei Team Just a few hours after being interrogated by Coffeezilla, Hayden Davis appeared in an interview with Dave Portnoy, where he explained why he did not pump more money into the market when the $LIBRA price was plummeting. According to him: "Javier's team told me to wait for a second confirmation video from him - but that video never appeared." He explained that: The $100 million balance is still 'stuck' and he refuses to refund because this is the only leverage in negotiations with Javier's government. Current options include: transferring to a non-profit organization in Argentina, refunding to investors ( despite the difficulty in determining losses ), reinjecting capital into the market, or even intervening to artificially inflate $LIBRA to prevent insider trading - although he is also concerned that such manipulation may recur. The Fallout of the Scandal The "Criptogate" case not only raised criticism about the relationship between private finance and politics, but also raised serious questions about transparency and ethics in leadership. When huge sums of money and power are linked through transactions on the blockchain, the line between legal and illegal becomes blurred. In that context, the anti-corruption investigation in Argentina is intensifying, and both the investment community and the public are waiting for decisive steps from the government to protect the interests of the people and strengthen trust in the financial market. This article delves into the details of the 'Cryptogate' scandal, clarifying the relationship between key figures and the serious consequences of transactions related to LIBRA. Whether upcoming investigations will yield new findings or assign responsibilities, only time will answer all remaining questions.