Argentina restarts the investigation into President Milei's LIBRA scandal: dual impact of crypto market manipulation case and bribery recordings on the October elections.

The political situation in Argentina is once again turbulent, as the opposition coalition in Congress successfully pushed to restart the investigation into the LIBRA Crypto Assets manipulation case involving President Javier Milei(. This investigation was reignited due to the bribery recording scandal revealed by Milei’s former lawyer Diego Spagnuolo), prompting the formation of a 136-member alliance among five major parties to force the investigation process. The investigation committee has set a deadline of November 10, with the final report to be released after the October elections, which could pose a fatal blow to Milei’s political future.

[Background of the Investigation Restart and Political Maneuvering]

The first investigation committee established in April this year has failed to operate effectively due to bureaucratic systems and congressional resistance. In May, Milei dissolved the working group specifically investigating his involvement. However, the latest exposed bribery recording scandal has provided a great opportunity for the opposition—call records provided by Spanio showed that Milei and his sister Karina were directly involved in the bribery, and this former government official has admitted to the authenticity of the recordings. This has sparked strong protests from the public, with demonstrations even involving throwing lettuce and other objects at the president.

[Core Accusation of the LIBRA Manipulation Case]

The LIBRA high-profile selling case was a significant financial scandal in Argentina’s history. Investigators have previously found solid evidence indicating that Milei and his sister are suspected of insider trading. Maximiliano Ferraro, a legislator of the Civic Radical Alliance ( ARI ) and head of the new investigative committee, emphasized: “The Ministry of Justice is investigating, and we hope it truly has confidence, is unafraid, and acts swiftly. Is there insider trading at the highest levels of power? I am reluctant to draw conclusions because that is precisely the task of the investigative committee.”

[Political Timeline and Election Impact]

The resumption of this investigation has a clear political timing: on the eve of the October elections, representatives from five major political parties formed an alliance with 136 out of 257 congressional members to promote the investigation. Although Milei’s allies strongly opposed it, they were unable to stop it. The investigation committee has set November 10 as the deadline to submit the final report, just after the October elections, which means the investigation process will become a central issue during the election campaign. Analysts believe that while the LIBRA scandal has significantly impacted the encryption community, it is merely a component of the political offensive against Milei.

[Crypto Assets Market Impact]

As an important crypto assets market in Latin America, Argentina’s president being involved in an investigation into cryptocurrency manipulation may trigger changes in regulatory policies. The local crypto community is closely monitoring the progress of the investigation, concerned that political turmoil could affect the stability of the digital currency regulatory framework. Furthermore, this case may also impact international investors’ confidence in Argentina’s crypto assets market, especially regarding market manipulation allegations involving high-level government officials.

Conclusion

The dual crisis facing the Milei government — the LIBRA Crypto Assets investigation and the bribery recording scandal — is reshaping the political landscape in Argentina. The successful restart of the investigative committee indicates the gathering of opposition forces, and this period of political turbulence before the October elections will have far-reaching effects on the regulatory environment for Argentina’s Crypto Assets market. Investors should closely monitor the progress of the investigation and its impact on local encryption policies, while also being wary of market fluctuations that may arise from political uncertainty. This incident also serves as a reminder to participants in the Crypto Assets market that political risk remains a significant consideration for investing in digital currency in emerging markets.