Argentine Judge Dismisses Criminal Case Against President Milei Over $Libra Crypto Crash

A criminal fraud investigation targeting Argentine President Javier Milei and his sister, Karina Milei, over their ties to a volatile cryptocurrency collapse has been officially thrown out. Court documents show that Federal Judge Marcelo Martinez de Giorgi dismissed the matter following a formal request from prosecutors.

In dropping the case, Judge Martinez de Giorgi ruled that the allegations failed to meet the threshold of any legal offence, determining that no criminally relevant deception had been established. President Milei hasn’t yet issued a public response to the court’s decision.

Social Media Post Triggered Surge and Crash

The controversy stems from February 2025, when the Argentine leader published a message on X, the platform previously known as Twitter, about a newly launched token called $Libra. Milei stated at the time that the digital currency would support start-ups and small businesses, providing a link where followers could purchase it.

The token’s valuation surged instantly following the endorsement. However, Milei deleted the social media post just hours later. The sudden removal caused the coin’s price to plummet, wiping out the vast majority of capital poured in by retail buyers.

Critics online quickly labeled the episode a rug pull, a fraudulent tactic where project creators attract investors to drive up token value before abandoning the venture and taking off with the proceeds. The fallout spilled into Argentina’s legislature, where opposition lawmakers began drafting plans for impeachment proceedings.

President Defended Actions as Good Faith

The presidential office moved swiftly to counter fraud claims, stating that Milei had no hand in building or managing $Libra. Officials also announced that the Anti-Corruption Office would review the situation to judge whether any ethical breaches had taken place.

Milei consistently maintained his innocence, telling broadcast outlet Todo Noticias in an interview, “I didn’t promote it, I merely shared it.” He asserted that he acted in good faith when the currency spiked, explaining that he took down the original post after realizing he lacked full context on the venture.

Addressing the financial fall-out in a separate television appearance, the president emphasized that investors chose to buy $Libra voluntarily and ought to have understood the inherent hazards of trading digital assets. That defense ultimately mirrored the prosecution’s decision to drop the proceedings, ending the formal legal threat against both Milei and his sister Karina.