Argentina: Judge Drops Crypto Fraud Case Against President Milei

Federal judge Marcelo Martinez de Giorgi has dismissed the criminal investigation into Argentine President Javier Milei and his sister Karina Milei. The case, which alleged fraud regarding the cryptocurrency $Libra, was closed at the request of prosecutors. The judge determined that the reported events did not fit a specific legal category and that no criminally relevant deception had been proven.

The legal action originated in February 2025 when Milei posted on X, formerly Twitter, about the newly launched coin. He stated the asset would help fund small businesses and start-ups and included a direct link for purchase. The coin's price rose sharply following the announcement. Within hours, Milei deleted the post and the value of $Libra dropped. Most investors who bought during the surge lost the majority of their funds.

The incident triggered immediate political and public backlash. Opposition members of Congress organized plans for impeachment proceedings. Online critics labeled the episode a rug pull, a scheme where promoters attract buyers for a cryptocurrency before halting trading to retain the raised capital. The presidential office responded by stating that Milei had no part in the development of $Libra. Officials also announced that the Anti-Corruption Office would review whether the president acted improperly during the period.

Milei has maintained his innocence throughout the dispute. In an interview with Todo Noticias, he explained that he only shared information about the coin rather than promoting it. He claimed he acted in good faith while the coin was gaining value. He justified deleting the social media post by saying he lacked knowledge of the project's details and decided to stop promoting it after learning more. In a separate television appearance, he argued that investors entered the market voluntarily and understood the financial risks involved.

The dismissal concludes the initial criminal probe into the $Libra scandal. The ruling stands on the grounds that the specific actions taken by the president and his sister did not constitute a crime under the relevant laws. Milei had not issued a public response to the news of the dismissal at the time of the reporting.

The case has now moved out of the criminal courts. No further judicial action is currently scheduled regarding the $Libra investigation. The political dispute over the coin remains a point of contention between the administration and opposition parties in Congress.