Argentine President Javier Milei and his sister Karina Milei did not appear in court for a virtual hearing related to the ongoing LIBRA meme coin scandal. The court session, held as a preliminary step toward possible civil litigation, saw no legal representation for the Mileis, raising questions about their defense strategy amid mounting legal pressure.
According to the Argentine newspaper Página/12, the hearing was attended by only one attorney representing Manuel Terrones Godoy, a social media influencer linked to prior financial irregularities. The absence of the Mileis and their legal counsel has intensified speculation about their involvement in the $4.5 million crypto scheme, which allegedly defrauded 25 victims across Argentina and internationally.
Judge Orders Financial Records Amid LIBRA Probe
Federal Judge María Servini has escalated the investigation by formally requesting access to the Mileis’ financial records from Argentina’s Central Bank. This judicial order includes account information dating back to 2023 and extends to Karina Milei, who serves as the Secretary General of the Presidency.
The investigation seeks to uncover potential connections between the Mileis and the promotion of LIBRA, a cryptocurrency that plummeted in value shortly after President Milei endorsed it on social media.
Court documents indicate that LIBRA’s collapse occurred just days after the president’s endorsement, triggering a wave of investor losses estimated at $4.5 million. Federal investigators are now focusing on tracing the funds and identifying potential financial beneficiaries.
Surveillance Footage Highlights Suspicious Transactions
Further complicating the investigation, security footage obtained from a Galicia bank branch shows María Alicia Rafaele and María Pía Novelli, relatives of Mauricio Novelli, entering the bank with empty bags on February 17 and leaving with noticeably fuller bags.
According to a report from the Federal Police’s Money Laundering division, the timing of the suspicious withdrawals aligns with the sudden surge in LIBRA’s market value following President Milei’s social media endorsement.
“At 11:03:08, the women were observed exiting the branch with their handbag and backpack appearing significantly more filled than when they arrived,” the report stated.
Investigators suspect that the withdrawn cash could be linked to LIBRA-related transactions, and they are now scrutinizing the bank records for evidence of large cash deposits or withdrawals made during the specified period.
LIBRA Scheme Unravels as Key Figures Targeted
Judge Servini has also frozen assets belonging to several key figures associated with the LIBRA cryptocurrency project. Among those targeted are Mauricio Novelli, the founder of Tech Forum Argentina, and Sergio Morales, a former advisor to the National Securities Commission. Both are accused of facilitating connections between the Mileis and Hayden Davis, the American developer behind the LIBRA token.
Authorities allege that Davis and Novelli orchestrated a pump-and-dump scheme, artificially inflating LIBRA’s value before cashing out and leaving investors with worthless tokens.
Meanwhile, the Mileis maintain that they had no direct involvement in the fraudulent activities and that President Milei’s social media promotion was intended to support what he believed was a legitimate project.
The investigation continues as authorities work to trace the missing funds and establish whether the Mileis had any financial interest or gained any direct benefit from the LIBRA project.
