Milei’s Sister Named in Major $Libra Crypto Fraud Lawsuit in New York

Victims from Argentina and the U.S. have expanded their lawsuit in New York over the $Libra cryptocurrency collapse, targeting not just crypto executives but also Karina Milei, the powerful sister of Argentina’s President Javier Milei.

This case, documented in official U.S. court records, now brings the government’s inner circle into the spotlight of a suspected scheme that saw over $100 million evaporate in hours.

The $Libra token launched in February 2025, touted by President Milei’s social media as a solution to Argentina’s economic troubles. This message, coming directly from the country’s top leader, quickly attracted tens of thousands of investors.

Many trusted that $Libra was safe and connected to the government. The value of $Libra skyrocketed, briefly reaching billions in market cap. But after the initial rush, its price crashed suddenly, wiping out investor savings almost overnight.

U.S. legal documents confirm that Hayden Davis, an American entrepreneur, led this project. Records show he secured meetings with both President Milei and his sister Karina at Argentina’s presidential palace, just before the token launched.

Official palace logs list Karina Milei as having authorized Davis’s visits. Legal filings also reveal that Davis bragged in private messages about his access to both Mileis.

He even suggested financial ties to the President’s sister. As the scandal grew, prosecutors froze over $57 million in assets linked to the suspects.

The lawsuit uses the RICO law, which allows U.S. courts to pursue organized fraud cases that used sophisticated tactics to lure small investors, especially those attracted by the promise of quick financial relief in Argentina’s troubled economy.

While neither Milei sibling currently faces criminal charges, the seriousness of the allegations—mixing high-level politics and financial deception—has triggered congressional probes and regulatory scrutiny in both countries.

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