President Milei's Crypto Scandal: Fallout Hits Argentine Assets
Background:
Libertarian President Javier Milei's involvement in a memecoin scandal has damaged investor confidence and weighed on Argentine assets.
Milei's Interview and Aftermath:
Milei attempted to minimize his role in a TV interview, but leaked footage revealed plans to utilize government resources for his benefit. This sparked concerns about potential legal implications.
Market Impact:
Argentine sovereign bonds and American depositary receipts declined on Tuesday morning as investors reacted to the news.
Government Response:
Presidential spokesman Manuel Adorni attributed the interruption in Milei's interview to an error by adviser Santiago Caputo. However, Adorni denied any prior coordination of interview questions with Milei's family or Caputo.
Opposition Criticism:
The opposition has seized on the scandal, calling for impeachment and filing lawsuits.
International Exposure:
Milei is scheduled to attend the Conservative Political Action Conference in Washington, where he hopes to meet with President Donald Trump.
Ongoing Investigation:
The responsibility for the memecoin scam and any financial gains remains unclear.