Judge Dismisses Crypto Fraud Probe Against Argentine President

The financial loss sustained by investors in the $Libra cryptocurrency has reached a definitive legal conclusion, with federal courts in Argentina formally closing the criminal case against President Javier Milei and his sister, Karina Milei. Court records indicate that the investigation, which had scrutinized the rapid rise and subsequent collapse of the digital asset, has been dismissed following a request from prosecutors. This decision marks the end of a significant legal battle that had placed the administration at the center of a national debate over cryptocurrency regulation and executive conduct.

Federal Judge Marcelo Martinez de Giorgi issued the ruling that concluded the proceedings. In his decision, the judge stated that the reported events did not fall under a specific legal category. He further concluded that the evidence presented failed to prove any criminally relevant deception. This determination effectively clears the president and his sister of the formal charges that had been pending since the token's volatility first drew public attention in early 2025.

The controversy originated in February 2025, when President Milei posted on the social media platform X, formerly known as Twitter, regarding the newly launched $Libra coin. In the post, he suggested that the cryptocurrency would assist in funding small businesses and start-ups. He also included a direct link for users to purchase the asset. Following this announcement, the market price of the coin experienced a sharp and immediate increase, drawing in a wave of new investors who were attracted by the presidential endorsement.

The momentum reversed rapidly within a few hours of the initial post. President Milei deleted the message from his social media feed, and the value of the $Libra token subsequently plunged. Most investors who had entered the market during the brief period of high demand lost the bulk of their capital. This sequence of events triggered significant backlash from political opponents and online commentators, who questioned the timing of the deletion and the financial impact on ordinary citizens.

In response to the market collapse, opposition members of Congress announced their intent to launch impeachment proceedings against the president. Critics on digital platforms used the term "rug pull" to describe the incident. This term refers to a specific scheme in which promoters attract buyers to a cryptocurrency, halt trading, and retain the funds raised from those sales. The accusation suggested that the administration had engaged in a coordinated effort to extract wealth from investors before withdrawing support for the project.

President Milei has consistently rejected these allegations throughout the investigation. In an interview with the media outlet Todo Noticias, he clarified his role in the promotion of the asset. He stated, "I didn't promote it, I merely shared it." He maintained that he acted in good faith while the coin's value was rising. This distinction between promotion and sharing has been a central part of his defense strategy.

The president also addressed the decision to remove the post from his social media accounts. He explained that he was unfamiliar with the detailed mechanics of the project at the time of the initial post. Upon learning more about the specifics, he decided to cease promoting the asset. In a separate television interview, he argued that individuals who invested in $Libra did so voluntarily. He emphasized that these investors understood the inherent risks associated with cryptocurrency trading.

The presidential office has maintained that Milei had no direct involvement in the technical development of the $Libra coin. At the time the controversy first emerged, the office announced that the Anti-Corruption Office would examine whether the president had acted improperly. That review has now concluded with the dismissal of the criminal case. At the time of the original report, the president had not issued a public response to the news of the dismissal.