Argentina’s political landscape has rarely seen a week as tumultuous as the one following the legislative elections of October 26, 2025. Despite a swirl of scandals, corruption allegations, and economic hardship, President Javier Milei’s party not only weathered the storm but emerged stronger than ever, tripling its seat count in Congress. The result, as reported by BirGün, defied predictions and left both supporters and critics stunned.
The elections were held against a backdrop of historic voter apathy—turnout, though compulsory, hit record lows. For many, this was a referendum on nearly two years of Milei’s controversial policies. His government’s austerity measures have slashed budgets for housing, health, and education, leaving Argentina’s most vulnerable citizens in the lurch. Pensioners, for instance, now scrape by on an average of just $280 a month, well below the poverty line. Every Wednesday, they march to Congress, demanding higher pensions and access to basic medicines, only to be met, as BirGün details, with police repression that has raised alarms about the right to protest in the country.
Yet, it wasn’t just economic pain dominating headlines. The past year has seen a cascade of corruption scandals reaching the highest levels of government. Perhaps the most explosive was the collapse of the LIBRA cryptocurrency, promoted by Milei himself during his 2023 campaign. According to BeInCrypto, judicial investigations and mounting evidence have revealed that bribes were paid to Milei in exchange for his public endorsement of the token. Martín Romeo, a plaintiff in the case, reconstructed a payment trail involving virtual wallets belonging to businessman Hayden Davis, creator of LIBRA, with funds funneled to traders Mauricio Novelli and Manuel Terrones Godoy—both closely linked to Milei.
But the LIBRA debacle was only the tip of the iceberg. As the congressional commission investigating Milei dug deeper, it unearthed evidence of a nearly identical scheme two months before LIBRA’s collapse. The December 2024 launch of the KIP token, spearheaded by KIP Protocol founder Julian Peh, saw the same cast of characters—Novelli, Terrones Godoy, and Peh—working in concert. According to a press release accessed by BeInCrypto, centralized exchange data revealed a direct money trail: on December 10, 2024, Terrones Godoy transferred nearly 60,000 USDT to a Novelli account already implicated in the LIBRA affair. That same night, additional transfers totaling over 92,000 USDT were made, further tying the two scandals together.
The connections between these figures run deep. At the Argentina Tech Forum in October 2024, organized by the Buenos Aires city government, both Peh and Milei presented at conferences attended by public officials and presidential advisers. It was here, according to BeInCrypto, that Peh established contact with Milei and his sister, Karina Milei, forging relationships that would later play a pivotal role in the unfolding scandals.
Karina Milei herself has come under intense scrutiny. In recent weeks, leaked audio recordings surfaced implicating her in a bribery scheme funneled through the National Disability Agency (ANDIS). The recordings describe how Karina, who serves as both sister and right-hand to the president, allegedly benefited from an 8% markup on the purchase and supply of medicines—3% of which was reportedly diverted to the General Secretariat of the Presidency. This revelation coincided with President Milei’s controversial veto of the Disability Emergency Act, a law meant to guarantee essential services for people with disabilities. Despite his objections, both chambers of Congress ultimately overturned the veto, signaling rare pushback against the administration’s sweeping cuts and delays in social spending.
The government’s troubles haven’t stopped there. José Luis Espert, the ruling party’s top candidate for national deputy in Buenos Aires province, withdrew his candidacy amid allegations that he received $200,000 from businessman Federico ‘Fred’ Machado, who is embroiled in a U.S. drug trafficking case. Espert, accused of using Machado’s plane and van during his 2019 campaign, also resigned as chair of the powerful Budget Committee. While Espert and party leaders, including Milei, have dismissed these accusations as mere “gossip,” the paper trail, as outlined by BirGün, tells a different story.
Despite this avalanche of controversy, international dynamics have played a critical role in shaping Argentina’s immediate future. In 2018, under then-President Mauricio Macri, Argentina signed a record $57 billion loan with the International Monetary Fund (IMF), tethering the nation to a program of labor and pension reforms. As the economic crisis deepened in 2025, the United States stepped in once again: Scott Bessent, U.S. Treasury Secretary, confirmed a $20 billion currency swap with Argentina’s Central Bank, a move designed to shore up reserves and stabilize the peso. The deal, however, has not been without detractors. With the U.S. facing its own government shutdowns, layoffs, and looming cuts to social programs, critics have questioned the wisdom—and the motives—behind such a massive bailout.
Donald Trump, now serving as U.S. President, made no secret of his support for Milei. At a recent White House meeting, Trump told reporters that continued economic aid would hinge on Milei’s party winning the legislative elections—a clear signal of Washington’s deepening involvement in Argentine affairs. “Argentina is fighting for its life... they have no money, they have no anything, they're fighting so hard to survive... they're dying,” Trump declared, as quoted by BirGün. For the Argentine opposition, this arrangement smacks of a “colonial pact,” one that risks mortgaging the country’s natural resources and sovereignty in exchange for desperately needed cash. With U.S. multinationals eyeing Argentina’s shale gas and lithium reserves, the government’s tax incentives for large investments have sparked heated debate over fiscal policy and environmental consequences.
In this charged atmosphere, only the left-wing FIT-U party openly protested U.S. influence, staging their campaign finale outside the American embassy. Their message: Argentina’s future should not be dictated by foreign interests or backroom deals. Yet with Milei’s party now holding enough seats in Congress to block impeachment and push through contentious tax and labor reforms, the path ahead seems clear—at least for now.
For ordinary Argentines, the stakes could not be higher. As the government presses on with its agenda, the country remains sharply divided, battered by economic woes and haunted by the specter of corruption. Whether Milei’s improbable political resilience will translate into lasting change—or simply more of the same—remains to be seen.
