Argentina is in the midst of a political storm as President Javier Milei faces allegations of using cryptocurrency to fund his presidential campaign. Prosecutors have discovered financial records showing unexplained transfers between accounts linked to Milei and Libra operations over several months.
The investigation is focused on whether these transactions funded Milei's campaign, which would be illegal and could damage his presidency. The Financial Action Task Force (FATF) has also taken notice of the case, as it may involve cross-border money laundering.
The news has caused a significant drop in Libra's value, with prices falling 15% immediately after the announcement. Other cryptocurrencies have also been affected, with trading volumes spiking to three times normal levels.