Nikolas Sargeant
Argentine President Javier Milei's crypto-friendly political party, La Libertad Avanza, has secured a decisive victory in the country's midterm elections, capturing over 40% of the vote. The win marks a significant political comeback after losing a provincial election just months earlier and positions Milei as a strong contender for the 2027 presidential race. Notably, his party won in Buenos Aires province, a traditional stronghold of the opposition Peronist party.
The victory comes despite lingering controversy from the Libra token scandal that erupted in February. The cryptocurrency crashed 94% within hours after Milei mentioned it on social media, sparking allegations of insider trading and market manipulation. While Argentina's corruption watchdog cleared him of wrongdoing, polling data suggests the incident significantly damaged public trust in the president.
Milei, a former economist, has championed free-market policies and reduced government intervention since taking office. His administration played a key role in legalizing cryptocurrency use for contract settlements in Argentina and has strengthened economic ties with the United States through a major currency swap agreement.
Though the Peronist party maintains its congressional majority, the midterm results affirm Milei's political momentum ahead of the 2027 presidential election. His pro-crypto stance and libertarian economic policies continue to shape Argentina's political landscape despite ongoing challenges to his public image.
Bitcoin Reacts
The price of Bitcoin shot up as news of Milei’s victory came in. As of the time of this writing, Bitcoin is up 3.54% and is trading at $115,553. Similarly, when Milei won in 2023, Bitcoin’s price went above $37k.
The LIBRA Token Scandal and Its Aftermath
The LIBRA token controversy has cast a significant shadow over Milei's crypto-friendly agenda. Launched on February 14 by Kelsier Ventures CEO Hayden Davis, the memecoin skyrocketed to a $4.6 billion market cap after Milei posted about it on his personal X account. Within hours, however, the token plummeted 94%, wiping out billions in value and leaving investors with substantial losses. Critics accused the president of participating in a pump-and-dump scheme, with opposition lawmakers calling for his impeachment over alleged market manipulation.
In June, Argentina's Anti-Corruption Office officially cleared Milei of ethical violations, ruling that his social media endorsement was an exercise of personal civil and political rights rather than an official government action. The office emphasized that no public resources were used and noted that Milei had used his X account for personal opinions since 2015. Despite this clearance, a federal criminal investigation into potential fraud and market manipulation remains active. The scandal significantly damaged Milei's approval ratings, which dropped from 47.3% in November to 41.6% by March, raising serious questions about government accountability in cryptocurrency matters.
