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Prosecutors find drafts of secret deal linking Milei to LIBRA, Hayden Davis

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Prosecutors find drafts of secret deal linking Milei to LIBRA, Hayden Davis

A confidential blockchain advisory agreement between Libra co-creator Hayden Davis and Argentinian president, Javier Milei, has been discovered on a suspect’s phone during the country’s ongoing investigation into the collapse of the LIBRA token.  

That’s according to La Nación and sources familiar with the results of a January 9 report led by the Public Prosecutor’s Office (MPF). 

The department’s computer experts reportedly recovered multiple copies of the agreement from Mauricio Novelli’s seized phone. The document appeared in exchanges between himself and Davis as various drafted iterations before the final version was signed by Milei. 

The Argentinian president reportedly still denies the existence of the “confidential agreement” that cemented Davis’ role as the country’s blockchain advisor and, in turn, his association with LIBRA’s launch on February 14, 2025.  

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Novelli is part of a group of lobbyists, alongside Manuel Terrones Godoy and Sergio Morales, who allegedly helped launch and profited from LIBRA’s collapse.

Read more: Javier Milei disbands crypto unit he set up to investigate himself

Prosecutor Eduardo Taiano said that the MPF’s findings mean that the undersecretary of presidential affairs, who reports to Milei’s sister, General Secretary Karina Milei, will now have to confirm whether or not she has copies of the secret agreement

The report also found Novelli played a key role in organizing the LIBRA launch and maintained contact with both Milei and his sister, Davis, Terrones Godoy, Morales, and Julian Peh, the CEO of the KIP protocol, which helped launch the token.  

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Multiple messages between Novelli and other parties were also found to have been deleted, but some messages were recovered after forensic extraction.

“All individual conversations and those related to WhatsApp groups made up of Novelli, Terrones Godoy and Sergio Morales were found to be empty or had been deleted,” analysts claimed.

One exchange involved Cardano founder Charles Hoskinson who accused Terrones Godoy of demanding a five-figure sum of money to meet Milei.

Hoskinson was promised “magical things will happen,” but refused the offer. 

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Hayden Davis-linked wallets sent $1M USDC after signing deal

Argentinian outlet Clarín revealed that Milei had signed a “confidential agreement” with Davis 15 days before the launch of LIBRA. It was subject to a non-disclosure agreement and required Davis to provide unpaid blockchain advice “ad honorem.”

Davis would “provide professional support, in line with global trends in decentralization and technological modernization, ensuring the highest quality and confidentiality at every stage of the advisory process.”

On the day it was signed, two payments of USDC worth roughly $1 million, were sent from Davis-linked wallets to the wallet of 75-year-old Orlando Rodolfo Mellino, a retiree with no real address, who then sent the funds to a wallet linked to Novelli.

Read more: LIBRA case judge orders full disclosure of Javier Milei bank accounts

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La Nación reports that after a year, the investigation into LIBRA has been carried out at varying speeds, and has witnessed delays in key areas, such as the disclosure of the report into Novelli’s devices. It adds that Milei is yet to hire a lawyer to represent himself. 

Meanwhile, Davis appeared to be walking free as of December 2025. Crypto analytics firm Bubblemaps recently claimed that Davis had made $15 million from Pump Fun’s private token sale just six months after LIBRA’s launch. 

However, Bubblemaps then deleted its findings after Pump Fun’s pseudonymous CEO, Alon Cohen, called it defamatory “misinformation.” He said, “No one from the team ever spoke to the guy, I didn’t even know he existed until after the scandal.”

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Crypto World

Yield-Bearing Stablecoins Surge as Washington Fights Over Yield

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Yield-Bearing Stablecoins Surge as Washington Fights Over Yield

Yield-bearing stablecoins are growing faster than the broader stablecoin market, according to Messari, as Washington remains divided over how crypto-linked yield should be treated under US law.

Yield-bearing stablecoins have outpaced the growth of the broader stablecoin market 15-fold over the past six months, according to a Messari research report published on Thursday.

The increase was driven by a 198% rise in the market cap of Circle’s USYC (USYC), a 169% increase in Paxos’ Global Dollar (USDG), a 114% rise in the value of the Tron DAO-linked Decentralized USD (USDD), and a 91% rise in Ondo Finance’s Ondo US Dollar Yield (USDY). The overall stablecoin market capitalization rose 9%.

Messari said the largest yield-bearing stablecoins are starting to function more akin to money market funds or bank deposits. “The winners don’t do payments,” Messari said, adding that the largest issuers focus their offer on a single asset, rather than payment-related use cases. 

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Yield-bearing stablecoins started outpacing the growth of the stablecoin supply in mid October 2025, Messari said. The trend suggests rising demand for blockchain-based US dollar products that offer yield without direct exposure to broader crypto volatility.

Yield stablecoins are currently worth a cumulative $22.7 billion, after their market capitalization rose 11% over the past 30 days, according to Stablewatch data.

The growth of yield-bearing stablecoins, 6-month chart. Source: Messari

While this marks a two-fold increase overthe $11 billion market capitalization reached in May 2025, the $22.7 billion value of yield-bearing stablecoins only accounts for about 7.4% of the total $303 billion stablecoin market capitalization, up from 4.5% in May last year.

Yield-bearing stablecoin supply, top yield-bearing stablecoin, 30-day chart. Source: Stablewatch

Among the largest yield-bearing stablecoins by value are Sky’s (sUSDS), Ethena’s (sUSDe) and Maple’s Syrup USDC, according to DefiLlama.

Cryptocurrencies, Law, Politics, Senate, Stablecoin, Yields
Top yield-bearing stablecoins by weekly yield. Source: Messari

In terms of yield, Maple’s Syrup USDC led this week with a 4.54% annual percentage yield, followed by Maple USDT with a 4.17% APY, Sky Lending’s SUSDS with a $3.75% APY in third place and Ethena’s USDe with 3.49% APY, according to Messari.

Related: Stablecoin payments startup Kast raises $80M at $600M valuation: Report

Lawmakers at odds over stablecoin yield regulations

Despite the growing demand, US lawmakers remain at odds over the market structure bill’s provisions related to yield-bearing stablecoins.

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On Thursday, US Senator Majority Leader John Thune reportedly said he doesn’t expect the chamber to move forward with the crypto market structure bill before April.

Yield-bearing stablecoins have become a key sticking point in the debate, with banking groups warning they could create a loophole that pulls deposits away from traditional banks.

The Senate Banking Committee postponed its markup in mid-January as bipartisan negotiations continued, drawing criticism from US President Donald Trump for delaying the bill.

Related: Stablecoin inflows rebound to $1.7B as Washington battles over yield rules

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The Digital Asset Market Structure Clarity Act, known as the CLARITY Act, is designed to provide a clear regulatory framework for digital assets. The House of Representatives passed the measure on July 17, 2025, and it has been under debate in the Senate since.

The US’s federal stablecoin framework, the GENIUS Act, prohibits issuers from paying interest or yield for holding a payment stablecoin, but still allows third-party platforms to offer reward programs tied to stablecoin holdings. The act was signed into law on July 18, 2025.