Karina Milei Dragged Into $100M $Libra Crypto Lawsuit as Presidential Ties Exposed

Victims of the catastrophic $Libra cryptocurrency collapse have dramatically expanded their lawsuit, placing Karina Milei, the powerful sister of Argentina’s President Javier Milei, directly in the legal crosshairs. Filed in New York federal court, the amended complaint alleges her involvement in a scheme that vaporized over $100 million in investor funds, leveraging the Milei family’s political influence to lure desperate Argentines seeking economic salvation.

Karina Milei’s Alleged Role in $Libra’s Deceptive Launch

U.S. court documents reveal Hayden Davis, the American entrepreneur behind $Libra, secured critical access to Argentina’s presidential palace through Karina Milei, who serves as her brother’s secretary and gatekeeper. Official visitor logs confirm she authorized Davis’s meetings with President Milei just weeks before $Libra’s February 2025 launch. Private messages cited in the lawsuit show Davis boasting about his connections to both siblings, even suggesting financial arrangements with Karina. Her alleged facilitation proved pivotal: President Milei’s social media endorsements framed $Libra as a solution to Argentina’s hyperinflation crisis, spurring tens of thousands of investments. Market capitalization briefly soared into the billions before the token’s value evaporated overnight in May 2025, leaving families financially ruined.

RICO Lawsuit Targets “Organized Fraud” Across Borders

Plaintiffs from Argentina and the U.S. are invoking the Racketeer Influenced and Corrupt Organizations (RICO) Act, arguing the scheme deliberately exploited Argentina’s economic distress. The lawsuit details how $Libra’s marketing falsely implied state backing, with Davis using presidential access to build legitimacy. Prosecutors have since frozen $57 million in assets tied to Davis and associates. While neither Milei sibling faces criminal charges currently, the civil suit intensifies scrutiny of their roles. Argentina’s Congress has opened probes into the palace meetings, and U.S. regulators are examining celebrity crypto promotions. The case highlights regulatory gaps enabling politically adjacent schemes to target vulnerable populations globally.

The path forward demands accountability—for investors who trusted $Libra as a lifeline, and for leaders whose endorsements carry life-altering weight. As courts untangle Karina Milei’s ties to this $100M catastrophe, governments worldwide must confront the wildfire risks of unregulated crypto politics.

Must Know

What was $Libra cryptocurrency?
$Libra was a cryptocurrency launched in February 2025 and aggressively promoted by Argentina’s President Javier Milei as a remedy for economic instability. It collapsed months later, erasing investor savings.

Why is Karina Milei being sued?
The lawsuit cites presidential visitor logs showing she authorized meetings between $Libra’s founder and President Milei. Plaintiffs allege this access lent the project fraudulent credibility, enabling massive investor losses.

What is the RICO Act’s significance here?
RICO allows U.S. courts to prosecute organized fraud spanning multiple jurisdictions. Victims argue $Libra’s operators used systematic deception—amplified by political access—to target international investors.

Are criminal charges expected?
Not currently. The Mileis face civil liability only. However, Argentina’s congressional investigations and asset seizures by U.S. prosecutors could escalate legal exposure.

How did President Milei promote $Libra?
He endorsed it on social media amid Argentina’s economic crisis, calling it a “monetary solution.” His posts triggered a surge of investments from citizens seeking financial relief.

What recourse do victims have?
Beyond the New York lawsuit, Argentine regulators are pursuing local actions. However, recovering lost funds remains uncertain given asset freezes and jurisdictional complexities.