Political Crisis Erupts Following Milei’s Crypto Endorsement
Javier Milei’s reputation is facing significant challenges as a recent post on X has triggered a political upheaval, marking the most severe crisis during his 14-month tenure as Argentina’s far-right president. Last Friday, Milei endorsed $Libra, a new cryptocurrency, suggesting that it could help finance small businesses. The announcement led to a surge in $Libra’s market value, skyrocketing to $4 billion almost instantly. However, this seemingly lucrative investment turned out to be a scam, with early investors cashing out and leaving many others at a loss. In the aftermath, Milei removed his post, claiming he had not adequately researched the cryptocurrency.
Milei’s Response and Political Fallout
At best, Milei seems to have been misled by unscrupulous promoters who exploited his influence to orchestrate this scheme. This has led to calls for impeachment in Congress and legal challenges that are now closing in on the president. In an attempt to address the situation, Milei provided a recorded interview to news outlet TN, asserting that those who invested in $Libra did so at their own discretion, likening the crypto market to a casino. He portrayed his role as that of an everyday citizen who, in good faith, promoted what he believed to be a beneficial initiative. Meanwhile, the government appeared to be content with this narrative until later developments unfolded.
Unedited Interview Footage Complicates Matters
The situation took another turn when an unedited segment of the interview was leaked. The footage revealed Santiago Caputo, a key figure in Milei’s administration, interrupting the journalist as he pressed for accountability from the president. The journalist acknowledged potential legal implications but ultimately rephrased his question, which was the version that aired. Caputo’s interruption was seen as a calculated move, especially considering Milei is now under investigation for possible fraud and “criminal conspiracy.” A U.S. law firm has lodged a complaint against Milei and the companies associated with $Libra, indicating that they were not registered with the U.S. Securities and Exchange Commission (SEC) and were unauthorized to act as investment brokers in Argentina.
Legal Ramifications and Damage Control Efforts
The interview served as a crucial element in what could become a legal defense strategy, highlighting the government’s urgency to manage the narrative. If Milei were to admit that he operates his social media account as both a private citizen and the president, his legal troubles would intensify. In response to the growing turmoil, high-ranking officials attempted damage control, with Cabinet chief Guillermo Francos stating that edits to recorded content are common to avoid miscommunication. Justice Minister Mariano Cúneo Libarona echoed this sentiment, emphasizing the purpose of recorded interviews. Spokesman Manuel Adorni offered a more elaborate excuse, attributing Caputo’s interruption to a desire for clarity, even as social media defenders rallied around Milei’s rhetoric of honesty, contrasting it with that of former president Cristina Fernández de Kirchner.
The $Libra Scandal’s Political Implications
The $Libra controversy continues to expand, and its political repercussions remain uncertain. Although impeachment efforts are unlikely to succeed due to a lack of support from the Kirchnerist opposition, the crisis has exposed significant rifts within Milei’s government and among his political allies. Notably, Adorni’s comments aimed at Caputo have drawn attention, as Caputo is part of the inner circle of power surrounding Milei. The dynamics of their relationship have shifted, with Adorni revealing that Milei had questioned the necessity of Caputo’s interruption—something that would have been kept private just months prior.
Calls for Accountability from Political Allies
The unrest generated by the $Libra incident has also resonated with the government’s allies, including former president Mauricio Macri, who expressed concern over Milei’s leadership. Macri criticized the president for being poorly advised and emphasized the need for a thorough investigation into what he termed a scam. Their complicated relationship has been characterized by both support and tension as Milei seeks to integrate Macri’s political party into his own coalition, La Libertad Avanza. Macri’s statements reflect a desire to understand the situation before external entities, such as the SEC or the FBI, intervene.
Milei’s Dilemma: Innocence or Naivety?
While Milei may not have engaged in any corrupt activities regarding $Libra, he faces the uncomfortable realization that he may have been duped by opportunistic individuals. His previous assurances of creating a “wall” to protect against dubious schemes now seem inadequate in the face of this scandal. As the president grapples with the unfolding crisis, the once-mighty figure of the “forces of heaven” appears increasingly exposed.
