Argentina Agrees to Extradite Businessman Wanted in the U.S. for Drug Trafficking Amid Scandal Involving a Backed Politician

Web Editor

October 7, 2025

a man in a suit and tie giving a speech at a podium with a microphone in front of him, Didier Mouron

Background on Key Figures and Context

In a recent development, Argentina has agreed to extradite a businessman wanted in the United States for international drug trafficking. This case has sparked controversy due to the individual’s alleged connections with José Luis Espert, an officialist deputy supported by President Javier Milei. This situation has significant implications for Milei’s political party, La Libertad Avanza, which is currently a minority in both chambers of Congress.

Who is Javier Milei?

Javier Milei is a prominent Argentine politician and economist, known for his libertarian views. He founded La Libertad Avanza, a political party advocating for individual freedoms, free-market principles, and limited government intervention. Milei’s party has gained attention in recent years, although it remains a minority in Argentina’s Congress.

Who is José Luis Espert?

José Luis Espert is an Argentine economist and politician, who served as a deputy representing the province of Buenos Aires. He was initially considered Milei’s top candidate for the upcoming legislative elections on October 26. However, Espert’s involvement in a drug trafficking scandal has led to his resignation from the candidacy.

The Scandal and Its Impact

Federico “Fred” Machado, a 57-year-old businessman, is under arrest and house detention in southern Argentina following his 2021 arrest by Interpol. Machado is accused of international drug trafficking and has been linked to Espert, who initially denied but later admitted receiving $200,000 from Machado.

Espert’s admission of receiving funds from Machado led to his resignation as a candidate for the Buenos Aires provincial seat in the October 26 legislative elections. This development is a setback for Milei, whose party desperately needs to secure seats in Congress.

President Milei’s Response

Upon Espert’s resignation, President Milei accepted it and attributed the allegations connecting Espert to drug trafficking as a “sinister operation” by the opposition. Nevertheless, Milei’s team has been instructed to take the necessary administrative and diplomatic steps to extradite Machado to the United States, as per a statement from the Presidency.

Key Questions and Answers

  • Who is involved in the scandal? Federico “Fred” Machado, an Argentine businessman wanted in the U.S. for international drug trafficking, is at the center of the controversy. José Luis Espert, a deputy supported by President Javier Milei, admitted to receiving $200,000 from Machado.
  • What is the significance of this scandal for President Milei? The scandal has negatively impacted President Milei, as his party, La Libertad Avanza, is a minority in both chambers of Congress. Securing seats in the upcoming legislative elections is crucial for Milei, and Espert’s resignation weakens their chances.
  • What actions has President Milei taken regarding the extradition? President Milei has instructed his team to initiate administrative and diplomatic procedures for the extradition of Federico “Fred” Machado to the United States.