Argentine President’s Washington Trip Overshadowed by Financial Fraud Allegations
Argentine President Javier Milei arrived in Washington D.C. on February 19, 2025, amid mounting pressure over his administration’s alleged involvement in the $Libra cryptocurrency scheme – a controversy now being called “CryptoGate” by international observers. This development comes just three months after Milei dissolved Argentina’s Central Bank as part of his radical economic overhaul.
The $Libra Connection
Documents leaked to El País reveal that Milei’s chief of staff reportedly fast-tracked regulatory approval for the controversial Libra token in December 2024. The cryptocurrency – marketed as Argentina’s path to dollarization – has lost 78% of its value since January amid allegations of market manipulation and insider trading.
“This isn’t libertarianism – it’s financial anarchy,” declared opposition leader Sergio Massa during a Buenos Aires protest attended by 40,000 citizens. Meanwhile, U.S. Treasury officials confirm they’re investigating potential SEC violations tied to Libra’s U.S.-based exchange partners.
Diplomatic Fallout
The scandal complicates Milei’s meeting with President Donald Trump, who previously praised Argentina’s dollarization efforts. White House Press Secretary Karoline Leavitt stated: “While we support Argentina’s anti-socialist reforms, financial transparency remains non-negotiable.”
Notably absent from Milei’s delegation was former Foreign Minister Diana Mondino, who resigned in October 2024 after clashing with Milei over Cuba policy. Her replacement, nationalist economist Luis Caputo, faces scrutiny over his prior consulting work for blockchain startups.
Market Reactions
The Buenos Aires Stock Exchange plunged 9% following news of the investigation – its worst single-day drop since Milei took office. However, some sectors show resilience: real estate prices rose 18% year-over-year after Milei abolished rent controls in January 2025.
As protesters gathered outside Argentinian embassies worldwide, Bitcoin maximalists like Michael Saylor tweeted support: “Milei understands that fiat currency is the real scam.” The president himself remained defiant during a CPAC side event: “The only pyramid scheme is socialism!”
