Forensic Analysis Reveals Draft Document

The document, retrieved from Novelli’s iPhone, outlines a three-part payment structure that totals $5 million. Screenshots of this draft surfaced after prosecutor Eduardo Taiano’s expert materials were made public. According to El Destape, the note was drafted in English on February 11, 2025, just days before Milei’s post about the Libra token on X.

Beginning with “Hello friends, this is the final agreement discussed with H,” the document seemingly refers to crypto entrepreneur Hayden Davis. This note elaborates on the payment framework: $1.5 million in liquid tokens or cash as an advance, another $1.5 million upon Milei’s Twitter announcement regarding Hayden Davis’s advisory role, and a final $2 million upon signing a contract for blockchain/AI consulting.

Crisis Management Note Surfaces

Investigators also found a separate note drafted on February 16, 2025, aimed at managing the crisis following the Libra controversy. This message, intended as a public statement, sought to support the Libra project while denying financial ties and attributing accusations to political adversaries.

Authorities speculate that this draft message was prepared for Milei’s social media or interviews. Call records indicate Novelli was in Dallas during the token launch, having communicated with Milei and his sister Karina around the time of the president’s post. During the growing controversy, Novelli engaged in multiple calls with presidential adviser Santiago Caputo.

Market Impact of Milei’s Libra Post

In February, Milei’s post on X about the Libra (LIBRA) memecoin led to a brief surge, reaching a $4 billion market capitalization before crashing 94% within hours. This abrupt downturn erased millions from investor funds and prompted calls for Milei’s impeachment. Despite the backlash, Milei maintained that he merely “spread the word” about Libra.

With these developments, the forensic analysis provides critical insights into the unfolding scandal, raising questions about political and financial transparency in cryptocurrency promotions.

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In May, Judge Jennifer L. Rochon had frozen these funds amidst a class-action lawsuit targeting Davis, Chow, blockchain infrastructure company KIP Protocol, and its co-founder Julian Peh. The freezing of assets was a significant development, as it was intended to ensure that victims of the Libra token scandal would be reimbursed. However, the recent ruling suggests that the defendants did not demonstrate “irreparable” harm, as the funds remain available for victim compensation.

Unfreezing the Libra Token Scandal Funds

The decision to unfreeze the $57 million in stablecoins is pivotal. Judge Rochon reasoned that the defendants made no efforts to move these frozen funds, according to reports from Law360. Despite a motion filed by Davis in July to dismiss the lawsuit against him, which was denied as “moot,” Rochon expressed doubts about the success of the class-action lawsuit against Davis, Chow, and others involved.

The Libra token scandal is notorious for being one of the largest alleged rug pulls in crypto history. It drew unwelcome attention to Argentine President Javier Milei, who initially promoted the token on social media as a project aimed at supporting Argentina’s small businesses. The token’s launch in February ended in disaster, with its value plummeting within hours, causing significant investor losses.

The Aftermath of the Libra Token Scandal

Following the collapse of the Libra token, President Milei distanced himself from the project, claiming ignorance of its fundamentals. His attempts to diffuse the situation were met with skepticism, and he faced an ethics investigation, though it concluded without charges. Critics alleged a cover-up, further intensifying the scandal’s impact.

As the legal proceedings unfold, the unfreezing of stablecoins marks a new chapter in the Libra token saga, raising questions about accountability and investor protection in the ever-evolving crypto world. This case serves as a stark reminder of the potential risks and volatility inherent in the cryptocurrency market.

Investors and crypto enthusiasts alike are watching closely as the story develops, underscoring the importance of transparency and due diligence in crypto investments. The outcome of this case may set precedents for future legal actions involving digital assets and the responsibilities of those who promote them.

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