The ongoing political uproar surrounding Argentine President Javier Milei has escalated with new allegations implicating his sister, Karina Milei, in a growing crypto scandal. The controversy began with the surge and subsequent crash of the Libra token, which Milei had promoted on X (formerly Twitter), leading to widespread volatility in Argentina’s financial markets.
The Crypto Scandal and Its Fallout
Hayden Davis, a key figure behind the Libra token, reportedly boasted in a text message to another investor that he was paying Karina Milei to influence the president’s actions, according to reports from La Nacion and CoinDesk. While Davis denied the allegations of payments to the president, the claims have triggered an investigation into his connections with Karina, who had taken initial meetings regarding the Libra project at the presidential palace.
The crash of the Libra token, which had initially gained significant attention after Milei’s endorsement, created chaos in the crypto market and intensified political pressure on the Milei administration. The scandal is now regarded as the most significant challenge the libertarian president has faced since taking office.
Karina Milei’s Role in the Controversy
Karina Milei, officially serving as the general secretary, has become one of her brother’s most influential advisers. She is known for managing access to the president, with her power in the government being comparable to that of the president himself. She accompanies Javier Milei to key international meetings and plays a central role in political strategy and lobbying efforts.
Reports have surfaced that Karina was the first to meet local crypto consultant Mauricio Novelli, who later introduced the president to key figures involved with the memecoin project. This connection has sparked concerns about possible conflicts of interest, with both Karina and her brother attempting to distance themselves from Davis’s crypto dealings.
Diverging Accounts from Milei and Davis
While Davis has acknowledged benefiting financially from the Libra project, he has continued to claim that the situation was a “botched launch,” and emphasized that the money involved belonged to individuals who thought they were working with Milei’s team. Both Milei and Davis have offered conflicting accounts of their interactions. Milei has denied knowing the full extent of the risks associated with the token and its impact on investors.
On the other hand, Davis has presented himself as an adviser to the president, though Milei’s administration has downplayed the relationship and denied any official connection with him. The confusion has only added fuel to the scandal, and public skepticism continues to mount over Milei’s involvement.
Public Relations Blunders
Milei’s efforts to defuse the situation were further marred by a botched television interview, which was broadcast with a hot mic incident that suggested a staged interaction with his adviser, Santiago Caputo. The incident sparked backlash and further intensified negative coverage of the scandal.
Karina Milei: The Gatekeeper
Karina Milei’s role in the administration has become even more prominent in the wake of the scandal. As the president’s closest adviser and gatekeeper, she controls who has access to the president. In private circles, the phrase “Talk to Kari” has become synonymous with gaining entry to Javier Milei.
Despite her influential position, Karina rarely speaks to the media and maintains a low public profile outside of campaign events. She and her brother are expected to arrive in Washington later this week for a political event, where they may meet with former President Donald Trump.
Milei’s Response to the Scandal
Reflecting on the fallout from the memecoin debacle, Javier Milei admitted that the scandal had revealed vulnerabilities in how accessible he and his sister had been to the public and political insiders. He acknowledged the need for better control over access to both him and his administration.
“We have decided we obviously can’t keep living how we did before and allow that everybody have access to us so easily,” Milei said. “Sadly, we have to understand that our role has to have filters.”
The scandal continues to evolve, with further scrutiny on Karina’s involvement and Milei’s handling of the crisis. The incident has cast a shadow over the president’s leadership, raising questions about accountability within his inner circle.
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