corruption

📰 What is happening: request for investigation into Trump's crypto firm

Recently, U.S. senators — including Elizabeth Warren (D-Mass.) and Jack Reed (D-RI) — requested a federal investigation from the government (Department of Justice + Treasury) into World Liberty Financial.
The main concern has three aspects:

Three with sanctioned or suspicious actors: The senators point out that WLF may have sold tokens (or allowed tokens to reach) wallets linked to sanctioned countries or previously sanctioned entities — such as certain groups in North Korea or Russia. This raises alarm that the firm could be facilitating sanctions evasion or money laundering.

Argentina’s financial markets took a heavy hit this week. Corruption allegations against officials linked to President Javier Milei shook investor confidence, deepened political uncertainty, and complicated the run-up to October’s midterm elections.

📉 Markets in the Red
On Monday, Argentina’s dollar-denominated bonds dropped to multi-month lows – the 2038 sovereign bond fell 2.4 cents to 67.37 cents on the dollar, its weakest level in more than four months. The 2041 bond lost nearly 3 cents.
The Merval Index (.MERV), the country’s stock market benchmark, sank 4% after a 3.8% decline the previous week. The peso also weakened nearly 3% to 1,356 per dollar. Asian FX markets priced the official rate at 1,358.9. Over the past four weeks, the peso lost more than 5% against the dollar, though it remains up over 43% year-on-year.

🕵️ Bribery Probe: Milei’s Sister Implicated
The scandal erupted after the release of audio recordings allegedly capturing Diego Spagnuolo, former head of Argentina’s disability agency, discussing bribery schemes. The tapes also mention Karina Milei, the president’s sister and chief of staff, as a recipient of illegal payments.
Authorities raided multiple properties, seizing phones and even a money-counting machine. Spagnuolo was swiftly removed from his post, though the authenticity of the tapes has not yet been confirmed. President Milei dismissed the allegations as politically motivated attacks by the opposition.

⚖️ Political Pressure and Loss of Confidence
Opposition lawmakers are demanding testimony from health officials overseeing the disability office. Tensions have also escalated following Milei’s recent veto of disability aid, which Congress failed to override. The upcoming October elections may effectively serve as a referendum on Milei’s market reforms and budget cuts.
“Investors fear the scandal could weaken Milei’s ability to push through tough reforms,” said Marcelo Garcia, director of Horizon Engage. “Without action, it looks like he doesn’t care about the weak and poor.”

⚡ Milei’s Combative Style at Risk
Milei’s confrontational political style once helped pull Argentina out of years of recession. But this time, it could backfire.
“His strategy requires him to remain highly popular,” Garcia explained. “Any scandal that erodes that popularity could seriously complicate his economic agenda.”

👉 Argentina now faces weeks of uncertainty: falling markets, a weakening peso, and a corruption investigation that could undermine the very foundation of Milei’s government and its reform plan.

#JavierMilei , #argentina , #Corruption , #markets , #economy

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