Criptogate: Government plays down scandal, paints Milei as victim

After a challenging weekend for President Javier Milei – defined by his promotion of the controversial ‘Viva la Libertad Project’ and the cryptocurrency $Libra that collapsed and caused massive financial losses – the Casa Rosada is closing ranks.

Officials on Monday played down the impact of the episode, insisting that ultimately "the only one” that has been “defrauded" is the President himself.

"The President believed in the project that was presented as a way to fund PyMES [small- and medium-sized businesses]. He knew the mechanism involved launching a token; if someone committed a crime in the trading process, that is another matter," a high-ranking source with access to the presidential office told the Noticias Argentinas news agency.

In the same vein, the official stated that if the funds are ultimately not used "for their promised purpose," the Government will file a criminal complaint against those involved in the initiative.

Sources close to the President argue that he is exempt from the irregularities of the initiative since he was presented with a proposal "to finance small businesses," which has not yet been fulfilled.

"Javier is constantly promoting private projects. So far, there is no fraud, but if one is confirmed, the only responsible parties will be those who created the project," said the source.

They point directly at businessman Hayden Mark Davis, who is behind the launch of $LIBRA; the CEO of KIP Protocol, Julián Peh; and the founder of Tech Forum, Mauricio Novelli.

After more than 24 hours of delay, and following the necessary damage control – Milei’s first public apology – the President’s Office announced that the Anti-Corruption Office, led by lawyer Alejandro Melik, would investigate to "determine whether there was any improper conduct by a member of the National Government, including the President himself."

Disregarding the uproar on social media, those in the corridors of the Casa Rosada, claim the controversy will not impact the libertarian leader’s positive image in the polls, trusting in the investigation. "If they are indeed fraudsters, the Judiciary will resolve it," said the sources.

"Everything was done publicly. Moreover, no government has investigated itself as Milei is doing because he has a strong commitment to the truth and an inability to lie," highlighted a figure from his inner circle.

Macri suspicions

In the early hours following the fallout from the failed cryptocurrency promotion, Presidential Chief-of-Staff Karina Milei was accused of being the link between the blockchain entrepreneurs and her brother.

Her inner circle dismisses those accusations, instead blaming former president Mauricio Macri and his cousin, Buenos Aires City Mayor Jorge Macri, for working against members of the President's entourage.

They even claim that the harsh public statement issued by the former president’s PRO party, does not represent the entire party leadership. Public endorsements also came from deputies Diego Santilli and Cristian Ritondo, with more in private.

Allegations that shady figures sought bribes to arrange meetings with Milei have also spooked the Casa Rosada. They have demanded the claims be substantiated with a legal complaint, stating it is untrue.

"Let them file the complaint. If someone has been exploiting Karina and Milei's names, we will be the first to tear them apart," asserted a prominent figure in the government.

However, officials admitted that it is possible that "someone external to the government posed as part of the administration" in order to help themselves.