BUENOS AIRES – Argentine President Javier Milei is navigating a complex political landscape today, Monday, October 27, 2025, following decisive victories for his La Libertad Avanza (LLA) party in the nation's midterm legislative elections. While the outcome grants Milei significantly bolstered political leverage in Congress, this triumph is heavily overshadowed by the deepening fallout from the ongoing LIBRA cryptocurrency scandal, which continues to erode public trust and fuel serious legal investigations.
LLA secured a substantial mandate, winning nearly 41% of the national vote and making significant gains in both the Chamber of Deputies and the Senate. This performance exceeded many analysts' projections and is seen as a crucial vote of confidence in Milei’s radical free-market economic reforms, which have seen inflation drop sharply from its peak. The enhanced presence in Congress is expected to strengthen his ability to push through his ambitious legislative agenda, including tax and labor reforms, over the remaining two years of his term, positioning him for the 2027 presidential race.
The LIBRA Scandal: A Credibility Crisis
Despite the electoral success, the narrative surrounding Milei remains heavily influenced by the LIBRA crypto controversy. The scandal centers on the President’s past public endorsement of the LIBRA meme coin, which preceded a massive surge in its market capitalization followed by a dramatic crash that resulted in substantial losses for numerous investors.
President Milei has publicly distanced himself from the project and denied any direct involvement in the coin’s promotion or the subsequent collapse. Nevertheless, the damage to his image as an anti-corruption crusader is evident in recent polling. A survey conducted by Zuban Córdoba following the crash indicated that a majority of Argentinians—57.6%—lack confidence in Milei's leadership, with only 36% expressing continued support.
The controversy is no longer confined to public opinion; it has escalated into formal legal proceedings. Criminal and congressional inquiries are actively investigating Milei and those associated with the LIBRA promoters. A significant recent development involved an Argentine prosecutor ordering a forensic search of the phones belonging to President Milei and his advisors as part of the ongoing effort to determine their level of involvement in the cryptocurrency controversy.
International Legal Dimensions
The international dimension of the scandal also remains a point of contention. While the domestic political focus is on the election results and ongoing investigations, legal actions abroad have also implicated the President’s inner circle. Notably, in the United States, Judge Jennifer Rochon reportedly ruled against international investment funds attempting to link certain LIBRA wallets to the state, instead suggesting that President Milei, his sister Karina Milei, and promoter Hayden Mark Davis most likely retain control over these assets.
This entanglement of high-stakes electoral politics with a volatile cryptocurrency scandal presents a significant challenge for the administration. Milei must now leverage his legislative mandate to govern effectively while simultaneously managing the persistent threat to his credibility posed by these deepening financial investigations.
Context of Austerity and Political Support
The midterm elections took place against a backdrop of harsh austerity measures implemented by the Milei administration. While these cuts have succeeded in drastically reducing the annual inflation rate, many Argentine citizens continue to face severe economic hardship, with rising prices often outpacing salary and pension adjustments. Furthermore, the political climate has been strained by other controversies, including bribery allegations directed at President Milei's sister, Karina Milei, which have further complicated his anti-corruption stance.
Internationally, the election results were closely watched, particularly by allies like the Trump administration, which had signaled potential consequences for financial assistance depending on the outcome. Milei’s victory ensures continued backing for his economic program, but the domestic political turbulence caused by scandals like the LIBRA affair remains a critical variable in his administration's stability and future success. This unique situation—a major political win juxtaposed with a high-profile ethical and legal cloud—defines the current political reality in Argentina.