The LIBRA Case: Milei's crypto scandal teaches us how to invest
The expert report is devastating. According to Infobae, the Directorate of Technological Support for Criminal Investigation (DATIP) revealed that President Javier Milei held eight calls with crypto businessman Mauricio Novelli on February 14, 2025, the same day he promoted the $LIBRA cryptocurrency on his X account. Novelli's phone contained drafts of contracts for $5 million, notes regarding "the usual 2,000" intended for Milei since 2021, and a trail of messages directly implicating the Casa Rosada in what the opposition calls "the crypto scam of the century in Argentina."
For Argentines who lost savings in $LIBRA (and for everyone considering investing in cryptocurrencies), this scandal is a brutal but necessary lesson on why you need serious, regulated, and transparent platforms like WEEX, rather than betting on tokens promoted by politicians on Twitter, even if that politician is the President of the Nation.
The numbers of the disaster: From $0.01 to $5, there and back in hours
The chronology of the $LIBRA case is a manual on how NOT to invest in crypto. As reported by La Nación, on February 14, 2025, at 7:01 PM, Milei published a pinned message on his profile on X promoting $LIBRA as "a private project" to "fund Argentines who are working on projects and lack access to financing."
The effect was immediate and devastating: the token's price went from $0.01 to nearly $5 in a few hours, an increase of 1,300%. As Infobae details, "that day, multiple users detected suspicious movements," and after Milei's post on X, "operators associated with Davis began to drain tens of millions of dollars from the token's liquidity pool."
By midnight in Argentina, the so-called "rug pull" (when creators withdraw liquidity and leave investors with worthless tokens) had exceeded $100 million. As La Nación points out, "a small group of operators allegedly withdrew nearly $100 million, while other investors suffered million-dollar losses."
The "36 insiders" with privileged information
Congressman Maximiliano Ferraro, president of the Congressional Investigative Commission, revealed chilling data according to Infobae: "36 people accessed data that allowed them to walk away with more than $1 million each through crypto wallets." This is the literal definition of insider trading and market manipulation.
As Ferraro explains: "Many trusted the president, in what that monetization was, the Libra token... and 36 insiders handled privileged information before the scam or the brutal crash." While ordinary Argentines were buying $LIBRA, believing in the President's word, a select group (who knew exactly when it would collapse) was selling at peak prices.
The expert report that changed everything: 200 calls and $5 million
DATIP experts found evidence on Mauricio Novelli's phone that completely contradicts Milei's official version. As Infobae reports, "Novelli had eight contacts with the President that day" of the launch, in addition to "another 35 calls with Karina Milei and Santiago Caputo."
But the most explosive find is the draft contract discovered. According to Última Hora, "the document was in the notes app of Novelli's phone" and establishes "a payment of $5 million in exchange for the Argentine president's public support for said cryptocurrency," divided into three payments: $1.5 million as an advance, $1.5 million for social media promotion, and a final $2 million.
As Ferraro adds according to Infobae, "these amounts coincide with three payments noted in Novelli's memo, one for $1 million and two for $2 million, both in crypto and cash."
The "usual 2,000," since 2021
But the financial relationship between Milei and Novelli did not start with $LIBRA. As Voces Críticas reveals, "the payments began in 2021, when Milei was a national deputy, and were related to his participation in courses and activities linked to the financial market and cryptocurrencies."
Hoy Día Córdoba details that in August 2023, during the election campaign, "Novelli reminded his secretary of the need to pay 'Milei's usual $2,000'." The flow of funds was documented in instructions to convert USDT into cash through financial firms.
What this scandal teaches us about crypto
The $LIBRA case is not just a political scandal; it is a brutal lesson on why you should NEVER invest in cryptocurrencies based on:
Endorsements from politicians
If a politician (even the President) tells you to buy a crypto, run in the opposite direction. Politicians are not financial advisors, and as $LIBRA demonstrates, they may have hidden incentives that go directly against your wallet.
New tokens without a track record
$LIBRA launched and collapsed in less than 24 hours. Unlike Bitcoin, which has over 15 years of history, or Ethereum with nearly 10 years, these new tokens are extremely risky. As explored in the analysis of the article What's next for Bitcoin? Predictions for quick gains, established cryptocurrencies have verifiable fundamentals and global communities.
Projects without transparency
$LIBRA never clearly explained what it did, who was behind it, or how it worked. The "draft contracts" and "projects linked to the crypto sector" found on Novelli's phone show a project put together in a rush to take advantage of Milei's name.
Promises of quick gains
The 1,300% rise in hours should have been a giant red flag, not an invitation to buy. Legitimate assets do not rise like that without a fundamental reason. As explored in Bitcoin breaks $87k: what's next for the crypto market?, even Bitcoin, with all its institutional adoption, does not rise 1,300% in a day.
WEEX: The serious alternative to tokens promoted on Twitter
While the $LIBRA case unfolds in court, there is a practical question for Argentines: how do you invest in crypto safely? The answer is to use regulated, transparent platforms with a proven track record like WEEX.
Why is WEEX different from $LIBRA?
1,000 BTC Protection Fund: WEEX has a real, audited, and verifiable security fund. There are no "draft contracts" on phones; there are published institutional guarantees.
Established cryptocurrencies: On WEEX, you trade Bitcoin, Ethereum, Solana, and other cryptocurrencies with years of history, not tokens launched yesterday by friends of the President.
No politicians promoting: WEEX does not need Milei, Cristina, or anyone else to tweet about it. Its reputation is based on years of safe operation, not political marketing.
Total transparency: Everything is documented, audited, and verifiable. There are no secret calls, no "usual 2,000," no privileged information for a few. What IS there? Proof of Reserves, so you can ensure your tokens are on the platform at all times.
More than 1,800 trading pairs: WEEX offers access to hundreds of legitimate cryptocurrencies with real liquidity, not pools that can be "drained" in hours.
24/7 support in Spanish: When you have a problem, there are real people to help you. You won't find the President saying "I wasn't aware" after you've lost everything.
The accused: Who is behind $LIBRA
As La Nación details, the main individuals involved in the investigation are:
Javier Milei: The President, whose tweet caused the asset's price to skyrocket. Expert reports show 8 calls with Novelli on the day of the launch.
Karina Milei: The Secretary General of the Presidency, pointed out for having facilitated the meetings between the parties. Novelli's phone shows 35 calls with her.
Hayden Mark Davis: The American creator of the digital currency, who allegedly traveled urgently to Argentina on January 30 to sign a confidentiality agreement.
Mauricio Novelli: The Argentine lobbyist who acted as a bridge between Davis and the Mileis. His phone is the epicenter of the incriminating evidence.
Manuel Terrones Godoy: Novelli's partner in the scheme.
The Political Context: Beyond the Crypto Scandal
As La Nación points out, "this complicated and uncertain process finds the Argentine government entangled in a scandal that we could call neighborhood-level. Very local, very homegrown." The timing could not be worse for Milei: while Argentina negotiates with the IMF and faces global economic uncertainty, the President is explaining why he promoted a cryptocurrency that scammed Argentines out of $100 million.
Ferraro was blunt according to Infobae: "The president must give explanations in the National Congress" and "there is a clear violation of the Public Ethics Law."
How to protect your savings from the next $LIBRA
The reality is that $LIBRA will not be the last crypto scheme that tries to take advantage of Argentines desperate to protect their pesos from inflation. Here is your survival guide:
Never trust endorsements from politicians
If Milei, Cristina, Massa, or any politician tells you to buy something, assume there is a conflict of interest. Politicians are not your financial advisors.
Invest only in cryptos with a proven track record
Bitcoin has existed since 2009. Ethereum since 2015. They have global communities, audited open-source code, and real institutional adoption. $LIBRA existed for less than a day.
Use regulated platforms
WEEX, Binance, Coinbase (platforms that have years of operation, millions of users, and independent audits). Not liquidity pools set up in Texas for a token promoted by a tweet.
If it sounds too good to be true, it probably is a scam
1,300% profit in hours is not normal. It is a red flag the size of the Casa Rosada.
Diversify and never invest more than you can lose
Even with legitimate cryptos like Bitcoin, volatility is real. Never put all your savings into a single asset.
The progress of the judicial case
As Infobae reports, "the federal prosecutor's office of Eduardo Taiano received the final report in January 2026" and now has to decide on the next steps. Judges Pablo Bertuzzi and Leopoldo Bruglia have already requested to "accelerate the $LIBRA case."
Ferraro harshly criticized the slowness: "The attitude of Taiano and the federal judge Martínez de Giorgi himself is very serious, because it is clear that there is a cover-up going on here." The opposition promises "interpellations of national public officials" and to send "certified copies of the Final Report to the plaintiffs and the judicial powers involved in cases abroad."
Conclusion: Protect your money with judgment, not tweets
The $LIBRA case is the biggest crypto scandal in Argentine history, and the revelations of March 2026 are devastating for the Milei government. The $100 million that vanished are not abstract numbers; they are the savings of Argentines who trusted the President's word when he said that $LIBRA was "a private project" to "fund Argentines who are working on projects and lack access to financing."
The lesson for all Argentines looking to protect their pesos from inflation is clear and brutal: never, under any circumstances, invest based on tweets from politicians, promises of 1,300% returns in hours, or tokens launched yesterday without a verifiable track record.
The $LIBRA case will continue to unfold in Argentine and international courts. In the meantime, every Argentine has the responsibility to learn the lesson: protect your money with judgment, research, and serious platforms, not with presidential tweets that hide $5 million contracts in cell phone drafts. WEEX and other regulated platforms are there precisely for that: to give you safe access to legitimate cryptocurrencies without needing any politician to tell you what to buy. Your wealth is too important to risk on the next crypto scheme promoted from the Casa Rosada. Are you ready to take control of your savings? Download the WEEX app and get started on a trusted exchange.
Disclaimer
WEEX and its affiliates provide digital asset exchange services, including contract trading and margin trading, only where it is legal to do so and for eligible users. All content is general information and does not constitute financial advice. You must seek financial advice before trading. Cryptocurrency trading is a high-risk activity and can lead to the total loss of your assets. By using WEEX services, you accept all risks and related terms. Never invest more than you can afford to lose. Consult our Terms of Use and our Risk Disclosure for full details.
