Argentina’s opposition party votes to reopen investigation into President Milei over LIBRA scandal

In Argentina, the opposition parties are revitalizing their investigation into President Javier Milei amid escalating corruption allegations linked to the LIBRA scandal, just weeks ahead of the pivotal elections in October.

The commission, which was first established in April but had lost momentum due to bureaucratic obstacles, was reactivated on August 28 following the emergence of leaked audio recordings. These tapes reportedly implicate Milei and his sister, Karina, in a bribery scheme uncovered earlier.

The incriminating recordings, obtained from former presidential attorney Diego Spagnuolo, suggest dubious cash-for-favors exchanges. Spagnuolo has since confirmed the authenticity of the tapes, intensifying scrutiny on Milei.

Public Upheaval Fuels the Investigation

The growing scandal has sparked public outrage, culminating recently in an incident where protesters threw lettuce and trash at Milei during one of his public engagements. This display of dissatisfaction has made headlines nationwide, reflecting deepening unrest towards his administration.

Though no physical injuries were reported, the incident signifies the increasing discontent against the current government. The renewed investigation into LIBRA marks a significant turn in the narrative that had previously stalled after Milei disbanded the initial task force in May.

The LIBRA scandal is characterized by serious allegations of insider trading and a possible pump-and-dump scheme associated with a digital token, raising concerns about involvement from the highest echelons of power in Argentina.

Maximiliano Ferraro, a renowned legislator from the Civic Coalition ARI and chair of the refocused investigative body, articulated the commission’s objective to determine if any misconduct occurred. Ferraro emphasized that the revival of this inquiry was spurred by lingering questions about potential insider trading activities.

Political Implications as Elections Approach

In a cohesive move, five opposition parties—who together hold 136 out of the 257 seats in the Chamber of Deputies—voted to relaunch the investigation despite enduring resistance from Milei’s allies.

The commission has set a timeline to submit its findings by November 10, strategically scheduled just after the upcoming elections.

This inquiry intensifies the already significant hurdles facing Milei, as his administration grapples with economic challenges and a rising tide of public dissatisfaction. The dual burden of corruption scandals and ongoing investigations could have profound implications for his political trajectory.

While the ramifications of the LIBRA scandal pose substantial consequences for Argentina’s cryptocurrency sector, the broader accusations of bribery and misappropriation of power resonate more deeply with the electorate. With elections imminent, the impact of this ongoing investigation—and its political repercussions—hangs in a precarious balance.

Mentioned in this article