it was revealed that the United States had been secretly selling weapons to Iran in exchange for the release of American hostages, and then using the proceeds from these sales to fund the Contras, a rebel group fighting the Sandinista government in Nicaragua. This covert operation was in violation of US laws, as well as the Reagan administration's public stance on not negotiating with terrorists. The scandal damaged Reagan's credibility and led to several high-ranking officials being indicted and convicted.
