Argentina has approved the extradition of businessman Federico “Fred” Machado to the United States to face drug-trafficking, money-laundering, and related charges. President Javier Milei instructed the Foreign Ministry and other agencies to carry out the administrative and diplomatic steps following a Supreme Court ruling authorizing the transfer. The case, which has moved through Argentine courts since 2021, has become politically sensitive because of documented financial and logistical ties between Machado and a prominent ally of Milei. Officials said the decision aligns with Argentina’s treaty commitments and ongoing cooperation with U.S. authorities.

The Extradition Decision

Argentina’s Supreme Court issued a final ruling authorizing Machado’s extradition after rejecting defense appeals that sought to halt or delay the process. The decision affirmed earlier findings by a federal court that the legal requirements for extradition were met, including dual criminality and sufficiency of the U.S. charges and supporting documentation. Shortly after the ruling, the presidential communications team said Milei had directed the Foreign Ministry, the Legal and Technical Secretariat, and the Cabinet Chief’s office to implement the court’s decision. Under Argentine practice, the executive branch must complete paperwork and coordinate with the requesting country on transfer logistics, security, and timing. Machado, who has been in custody in Argentina since 2021 under various restrictions, is expected to be surrendered to U.S. Marshals once the remaining formalities are concluded.

Allegations Facing Machado

U.S. prosecutors accuse Machado of conspiring to traffic cocaine, launder proceeds, and commit financial offenses including wire fraud and export violations. The narcotics conspiracy count centers on allegations that aircraft were registered through shell companies and then transferred to criminal organizations in Latin America for use in multi-ton cocaine shipments bound for the United States. Investigators say associated companies and intermediaries moved funds to conceal origin and ownership. Machado has denied wrongdoing and previously contested extradition on procedural and constitutional grounds within Argentina’s legal system. The U.S. case, filed in Texas, includes additional defendants alleged to have taken part in the same trafficking and money-movement network. One of Machado’s business associates in an aviation venture has already been convicted and sentenced in the United States in related proceedings, according to public court records referenced during the Argentine hearings.

Political Fallout in Buenos Aires

The extradition comes as the case has drawn increased attention for its political implications. Documents filed in the United States and disclosed in Argentina show a six-figure payment from Machado to José Luis Espert in 2020, along with extensive use of private aircraft tied to companies associated with Machado. Espert, an economist and lawmaker long identified as an ally of Milei, initially disputed characterizations of the payment but later acknowledged receiving funds and said they were connected to consulting work unrelated to illicit activity. He also confirmed multiple flights on aircraft linked to Machado. Amid the scrutiny, Espert withdrew his candidacy for an upcoming congressional race in Buenos Aires Province, citing the need to focus on legal matters and avoid further distraction during the campaign. The episode has tainted a political ally of the president in the closing weeks before midterm elections in which Milei seeks to expand his party’s small presence in Congress.

For the Milei administration, the timing intersects with other challenges: legislative defeats that complicated the government’s fiscal program, a volatile currency environment following a provincial election setback, and ongoing negotiations with international partners on financial support. The presidency framed the extradition as a matter of legal compliance and international cooperation against organized crime, while political opponents highlighted the links between Machado and Espert and called for additional congressional oversight. Prosecutors in Argentina have opened a separate inquiry into possible money-laundering connected to the payment and aircraft use; Espert has said he will cooperate and expects to clear his name.

Legal and Operational Next Steps

With the Supreme Court’s ruling in hand, the Justice Ministry and the Foreign Ministry are responsible for final coordination with U.S. authorities. Standard procedures include issuing the executive order formalizing surrender, arranging secure transport from current custody to the transfer point, and confirming that the requesting country’s assurances meet treaty conditions—among them the specialty principle, which limits prosecution to the offenses for which extradition was granted. Argentine officials will also document time served and detention conditions during the extradition process, details that are frequently relevant for later court proceedings abroad. Defense counsel can still pursue limited remedies—such as challenges to specific transfer logistics—but those avenues typically do not reopen the merits of the extradition ruling unless new legal issues emerge.

In the United States, Machado will be presented before a federal magistrate judge to be advised of the charges and his rights, and to address detention status. Prosecutors are expected to seek pretrial detention given the nature of the alleged offenses and prior flight history. Subsequent steps will involve discovery, motions on admissibility and jurisdiction, and any plea negotiations. If convicted on narcotics-conspiracy and money-laundering counts, sentencing would follow federal guidelines that account for quantity, role, and criminal history.

Implications for Milei’s Agenda

The extradition underscores Argentina’s posture on judicial cooperation but also exposes political risk for the administration. On policy, the government has emphasized law-and-order themes and deeper coordination with U.S. agencies on transnational crime. On politics, the revelations surrounding an ally complicate messaging at a time when the ruling coalition is attempting to consolidate support for its economic overhaul. Markets and political observers will be watching whether the case leads to further resignations, changes in campaign strategy, or new legislative proposals on campaign finance and transparency.

For now, the facts are this: Argentina’s highest court approved the extradition of Fred Machado; the president instructed his cabinet to execute the decision; the charges in the United States include drug trafficking and money laundering; and disclosures tied to the case have tainted a political ally of Milei, who has stepped back from a high-profile candidacy while legal reviews proceed. The transfer itself is now an administrative matter, and the U.S. judicial process will determine the outcome of the underlying charges.