Javier Milei’s Political Troubles Deepen
Javier Milei’s once-prominent status has taken a significant hit following a post on X, the platform where the Argentine president actively engages in his “cultural battle.” This incident has led to the most severe political crisis during his 14-month tenure as a far-right leader. Last Friday, Milei suggested investing in $Libra, a new cryptocurrency he introduced as part of an initiative to support small entrepreneurs. The cryptocurrency quickly surged in value, reaching an astonishing $4 billion within minutes. However, what appeared to be a lucrative opportunity turned out to be a scam, with early investors cashing out and leaving many others at a loss. In the aftermath, Milei deleted his post, claiming he had not adequately informed himself about the situation, effectively opening a Pandora’s box of consequences.
At worst, Milei may have been swayed by unscrupulous businessmen who capitalized on his reputation to execute a significant fraud. This sparked a wave of impeachment requests in Congress and legal challenges that now threaten the president’s position. In an attempt to address the fallout, Milei participated in a recorded interview with news outlet TN, where he stated that those who invested in $Libra did so at their own risk, comparing the cryptocurrency market to a casino. He maintained that his endorsement was made in good faith, as a regular citizen promoting what he believed was a beneficial idea. The government appeared to accept this explanation, but it didn’t quell the unrest. Later that day, presidential spokesman Manuel Adorni shared a social media post wishing followers a good night, ending with his trademark phrase, “The End,” which added an ironic twist to the situation.
However, this brief moment of calm was shattered when an unedited segment of the interview leaked, revealing Santiago Caputo, a key figure in Milei’s administration, interrupting the journalist. The journalist pressed on, pointing out Milei’s dual role as both a citizen and the president. Caputo’s intervention was calculated, as Milei is currently under investigation for potential fraud and “criminal conspiracy.” A U.S. law firm has also lodged a similar complaint against Milei and the companies involved with $Libra, including Kip Protocol and Kelsier Ventures. These firms are accused of operating without proper registration with the U.S. Securities and Exchange Commission (SEC) and of potentially breaching several U.S. laws.
The interview with Milei was seen as a crucial element of a potential legal strategy, which explains the motivation behind editing it. If Milei acknowledged that his posts on X, where he has a following of 3.8 million, were made in his official capacity, it could complicate his legal standing. In light of this, senior government officials rushed to mitigate the damage, revealing a sense of urgency within the Casa Rosada. Cabinet chief Guillermo Francos acknowledged that corrections to recorded interviews are commonplace. Justice Minister Mariano Cúneo Libarona reinforced this sentiment by stating that such edits are meant to prevent any missteps. Adorni, maintaining his usual composure, elaborated that Caputo’s cut was an attempt to ensure clarity for the audience, a justification that seemed unusually detailed.
The $Libra controversy continues to escalate, and its political ramifications remain uncertain. While the impeachment motion is unlikely to succeed due to the low probability of the Kirchnerist opposition securing the necessary votes, the incident has exposed significant rifts within the government and among its political allies. Notably, Adorni’s criticism of Caputo was surprising, given that Caputo is part of the “iron triangle” of power alongside Milei and his sister Karina. At the conclusion of the interview, Milei reportedly expressed to his chief advisor that the interruption was unwarranted, a remark that would have previously been kept confidential.
In the media, headlines surrounding the cryptocurrency scandal have proliferated, indicating widespread concern. Former president Mauricio Macri weighed in, expressing dissatisfaction with Milei’s handling of the situation. He described the president as poorly advised and emphasized the need for a serious investigation into the $Libra affair. Macri, who has had a tumultuous relationship with Milei, signaled that he prefers to uncover the truth before external authorities such as the SEC and the FBI intervene.
Ultimately, Milei may face more perilous challenges than just legal or political issues. He has cultivated an image among his supporters as a financial and economic savant, but he now finds himself in a precarious position where his options are limited. If he genuinely did not engage in any corrupt actions related to $Libra, he will eventually need to confront the reality that he was misled by a group of opportunistic individuals. His earlier promise to construct a barrier against such unscrupulous influences now appears questionable, as revelations continue to emerge.
