Argentina and Cryptocurrencies: Unfulfilled Promises and New Controversies

For best results when printing this announcement, please click on link below:In February 2025, Milei promoted the cryptocurrency $LIBRA on his social mediaplatforms. His endorsement triggered a rapid surge in the asset's value,attracting thousands of investors. However, just days later, the tokencrashed, resulting in massive losses.This incident, dubbed "Cryptogate," has sparked investigations in Argentinaand the United States. A class-action lawsuit has been filed in New Yorkagainst those responsible for the scheme, and Argentina's opposition hascalled for Milei's impeachment. Fraud and illicit association charges areunder review in Argentine courts.The Discovery of $ARG: A Suspicious Pattern?A recent report revealed that another cryptocurrency, $ARG, was createdminutes after $LIBRA's launch. Investigations show that the wallet that issued$ARG received funds from FixedFloat, an exchange that allows anonymoustransactions—just like the wallets behind $LIBRA and $MILEI.Moreover, $ARG was issued in the same quantity as $LIBRA: one billion units.These identical patterns suggest a possible connection between the threetokens, raising suspicions of a deliberate market manipulation strategy aimedat profiting before the cryptocurrencies' collapse.Impact on the Economy and PoliticsThe $LIBRA scandal and the revelation of $ARG have severely damaged Milei'scredibility, shifting focus away from his economic reforms. The lack ofconcrete progress in closing the BCRA and the uncertainty created by thesecases have weakened market confidence.The government is now seeking to stabilize the situation by negotiating a newloan with the International Monetary Fund (IMF) to bolster BCRA reserves andlift foreign exchange restrictions. Congress approved the authorization forthese negotiations, but a lack of transparency has raised concerns amongeconomists and lawmakers.