Milei's cabinet chief resigns after $500,000 Bitcoin probe

Manuel Adorni, the face of Argentina's austerity drive, resigned June 28 as prosecutors probed $500,000 in undeclared assets he attributed to early Bitcoin investments.

Manuel Adorni, Argentina's cabinet chief and the public face of President Javier Milei's austerity campaign, resigned June 28 after prosecutors opened an illicit enrichment probe tied to $500,000 in undeclared savings he said came from Bitcoin investments made in 2014.

"I have been treated as a criminal and as corrupt, even though not a single act of corruption can be attributed to me," Adorni wrote in a three-page resignation letter posted on social media.

The scandal erupted after media reports revealed Adorni had purchased a Buenos Aires apartment for $230,000 and a weekend house in a gated community outside the capital — purchases that appeared inconsistent with his public salary of $2,600 a month until late last year. He later admitted to buying dollars on Argentina's black market and hiding $500,000 from tax authorities, claiming the funds came from an early Bitcoin investment. Bitcoin experts have questioned the consistency of his account, according to local media.

The resignation deals a blow to Milei, who swept to power on a libertarian platform symbolized by a chainsaw-wielding pledge to slash Argentina's public administration and root out corruption. His approval rating has fallen to 39% from 53% a year ago, a May survey showed, as the scandal erodes the credibility of his anti-corruption message.

Investigation Widens as Prosecutors Scrutinize Bitcoin Claims

Federal prosecutors have requested subpoenas for property records, vehicle registrations and financial transaction data as they investigate the source of Adorni's wealth. The probe marks the most damaging corruption scandal to hit Milei's administration since he took office three years ago, following a series of smaller controversies.

Milei has so far stood by his former spokesman-turned-cabinet-chief. "I stand by my ministers to the bitter end," the president said. His sister and adviser, Karina Milei, thanked Adorni for his "tireless work" and described him as an "upright, valuable and much-loved" member of their right-wing party.

The last time a senior Argentine official faced an illicit enrichment probe was in 2019, when former President Mauricio Macri's administration was dogged by corruption allegations that contributed to his re-election defeat. Argentina's sovereign bonds fell sharply during that period, with the country's risk premium — measured by the EMBI+ spread — widening by more than 300 basis points over three months.

Political Uncertainty Weighs on Argentina's Markets

The scandal adds political uncertainty to an economy already grappling with annual inflation above 50%, capital controls and a $44 billion International Monetary Fund program. Argentina's dollar bonds have come under pressure in recent weeks, with the benchmark GD30D bond trading at around 45 cents on the dollar, according to data from JPMorgan. The peso's black-market exchange rate, known as the "blue dollar," has weakened to around 1,400 per U.S. dollar, reflecting renewed currency stress.

The investigation into Adorni's finances is expected to take months, with prosecutors examining whether his Bitcoin claims can be substantiated. If the probe uncovers evidence of illicit enrichment, it could trigger a broader political crisis for Milei, who has staked his presidency on the promise of cleaning up Argentina's political class. The next key date is the midterm congressional elections in October 2027, where Milei's party will seek to expand its minority presence in Congress.

This article is for informational purposes only and does not constitute investment advice.