Argentine President Javier Milei and his sister, Karina Milei, failed to appear at a virtual court hearing regarding the LIBRA meme coin scandal, a crypto fraud case that allegedly cost investors $4.5 million. Notably, no legal representatives were present on their behalf, raising speculation about their defense strategy as the case intensifies.
According to Página/12, only one defense attorney participated in the session, representing Manuel Terrones Godoy, a social media personality with ties to other financial fraud cases. The hearing was intended as a preliminary step before advancing to potential civil litigation.
Judge Orders Financial Records in LIBRA Crypto Investigation
Federal Judge María Servini has escalated the LIBRA probe by demanding access to financial records for both Javier and Karina Milei, including banking data from 2023 onwards. The court order follows allegations that the siblings had connections to individuals who promoted the LIBRA cryptocurrency, which crashed shortly after the president publicly endorsed it.
Documents submitted to the court indicate that LIBRA, a meme coin launched on February 14, briefly spiked in value following President Milei’s endorsement, only to plummet days later. Federal investigators are scrutinizing transactions involving LIBRA, as well as assets belonging to key figures allegedly involved in the scheme.
Key Figures and Suspicious Transactions Under Investigation
The court has also frozen assets linked to Mauricio Novelli, founder of Tech Forum Argentina, and Sergio Morales, a former National Securities Commission advisor. Both men are accused of helping connect the Mileis with Hayden Davis, the American developer behind LIBRA.
Authorities are also investigating transactions by María Alicia Rafaele and María Pía Novelli, relatives of Mauricio Novelli, who were seen on bank security footage entering a Galicia bank branch with empty bags on February 17 and leaving with bags that appeared significantly fuller.
“At 11:03:08, the women were observed exiting the branch with their handbag and backpack appearing significantly more filled than when they arrived,” stated a report from the Money Laundering division of the Federal Police.
Investigators suspect that the funds withdrawn could be linked to the LIBRA scheme, with bank records showing unusually large cash transactions in the days following the president’s social media promotion of the meme coin.
Milei Denies Knowledge of LIBRA Transactions
President Milei has since distanced himself from the scandal, claiming he had no knowledge of the LIBRA transaction details. In a public statement, he asserted that his social media promotion was intended to support an emerging digital asset and that he was unaware of the token’s potential to collapse.
Meanwhile, legal experts warn that the Mileis’ absence from the court hearing could further complicate their legal standing, particularly if additional evidence emerges linking them to the $4.5 million in investor losses.
The LIBRA investigation continues as federal authorities work to track the missing funds and establish whether the Mileis had any direct involvement or financial gain from the fraudulent cryptocurrency scheme.
