Argentina’s Milei Strengthens Political Power Amid LIBRA Scandal

TLDR

• Milei’s La Libertad Avanza party wins 41% in Argentina’s 2025 midterms.
• LIBRA crypto scandal causes massive losses, impacting Milei’s public support.
• Milei’s party gains 101 seats in Argentina’s Congress after midterm win.
• Criminal investigations into Milei’s alleged role in LIBRA deepen amid scandal.

Argentine President Javier Milei’s La Libertad Avanza (LLA) party secured a significant win in the 2025 midterm legislative elections, gaining nearly 41% of the national vote. This victory expands Milei’s influence in Congress, reinforcing his ability to push his reform agenda. However, the success is clouded by the ongoing LIBRA cryptocurrency scandal, which continues to erode public trust and draw legal scrutiny toward Milei and his circle.

Victory in the 2025 Midterms

Javier Milei’s party, La Libertad Avanza, emerged as a dominant force in Argentina’s 2025 midterm elections, achieving substantial gains. With nearly 41% of the national vote, LLA gained ground in key districts, including Buenos Aires, Mendoza, Córdoba, and Santa Fe. This result marked a decisive shift in the country’s political landscape, with the Peronist alliance falling behind at 31.6%.

LLA’s success has expanded Milei’s control over both chambers of Congress. The party now holds 101 out of 257 deputy seats, a notable increase that strengthens Milei’s hand in legislative affairs. This newfound leverage is expected to support his economic reforms, particularly in areas like tax, labor, and pensions.

Milei expressed confidence in his ability to continue implementing his agenda. He remarked, “During the first two years, we avoided falling off the cliff. In the next two years, we will continue the reformist path to make Argentina great again.”

LIBRA Crypto Scandal Continues to Unfold

Despite his electoral success, Milei’s involvement in the LIBRA cryptocurrency project has attracted growing scrutiny. The controversy began when Milei publicly endorsed LIBRA, a meme coin, which led to a surge in its market cap. However, the coin’s value plummeted once insiders sold off their holdings, causing significant financial losses for investors.

Milei distanced himself from the project, denying any involvement in its operations. However, the fallout from the scandal has significantly affected his approval rating. According to a Zuban Córdoba survey, just 36% of Argentinians continue to back Milei, while 57.6% expressed distrust in his leadership. This shift in public opinion has prompted both criminal and congressional investigations into Milei and his advisors.

Legal Scrutiny Intensifies

The legal consequences of the LIBRA scandal have escalated in recent months. In October, an Argentine prosecutor ordered a forensic investigation into the phones of President Milei and his key advisors. This move is part of a broader inquiry into their potential involvement in the cryptocurrency project.

In the United States, a judge recently suggested that Milei, along with his brother Karina Milei and promoter Hayden Mark Davis, are likely to control the assets associated with LIBRA. This development has intensified the pressure on the president’s inner circle, with some calling for the detention of two aides implicated in the token launch.

As investigations continue, Milei’s administration faces the challenge of navigating both political success and the growing legal issues surrounding the LIBRA crypto scandal.

Struggling to Maintain Credibility

While the 2025 midterm victory gave Milei a boost in political power, the LIBRA scandal threatens to undermine his credibility. Trust in the president has waned, as accusations of insider trading and manipulation continue to dominate headlines. This creates a difficult balancing act for Milei, who must now address both the fallout from the scandal and the expectations surrounding his legislative reforms.

Despite the challenges, Milei remains focused on his reform agenda. However, whether he can maintain political momentum in the face of ongoing investigations and public skepticism will be crucial in the coming months. His ability to regain public trust may determine the course of his administration as it approaches the 2027 presidential election.