Judge drops crypto fraud case against Argentine president

The criminal investigation into Argentine President Javier Milei and his sister Karina Milei has been officially dropped, a move that concludes a high-profile legal battle over a failed cryptocurrency project. The dismissal marks the end of a probe that had drawn significant national attention and political tension. Federal court records confirm that the case is now closed following a decision by the presiding judge.

Federal judge Marcelo Martinez de Giorgi issued the ruling after prosecutors requested the case be terminated. In his decision, the judge stated that the reported events did not fit within a specific legal category. He concluded that the evidence did not prove any criminally relevant deception had occurred during the launch and subsequent collapse of the token.

The dispute centered on $Libra, a newly launched cryptocoin that experienced a sharp decline in value shortly after the president mentioned it in a social media post in February 2025. Milei had written on the platform X, formerly known as Twitter, that the coin would help fund small businesses and start-ups. He also included a direct link for followers to purchase the asset. Following this announcement, the price of the token climbed rapidly.

However, the momentum reversed within a few hours when Milei deleted the post. The coin's value then plunged, leaving most investors who had bought in at the peak with significant losses. This rapid drop in value prompted opposition members of Congress to plan impeachment proceedings. Online critics frequently described the episode as a rug pull, a scheme where promoters attract buyers and then halt trading to keep the raised funds.

Milei has consistently rejected these accusations throughout the process. In an interview with Todo Noticias, he clarified his role by stating that he did not promote the coin but merely shared it. He maintained that he acted in good faith while the coin was rising in value. He defended his decision to remove the post by explaining that he did not know the details of the project initially. After learning more about it, he decided to stop promoting it.

In a separate television interview, the president argued that individuals who invested in $Libra did so voluntarily. He suggested that these investors understood the inherent risks involved in cryptocurrency markets. The presidential office has also stated that Milei had no involvement in the development of the token. At the time of the incident, the administration announced that the Anti-Corruption Office would examine whether the president had acted improperly. Milei had not yet responded to the news of the dismissal at the time of the original report.

The closure of this case provides a formal legal endpoint to the $Libra controversy. While the political fallout may continue to influence public opinion, the judicial process has now determined that no criminal offense was established. The decision highlights the challenges of regulating digital assets in a political context.