The short version
- A federal judge has dismissed the criminal investigation into President Javier Milei and his sister regarding their alleged involvement in a cryptocurrency scandal.
- The ruling follows prosecutors' recommendation, with the court finding that the president's actions did not constitute legally defined fraud or criminally relevant deception.
- Opposition lawmakers had previously sought impeachment proceedings after investors suffered significant losses when the value of the promoted coin collapsed rapidly.
A federal judge in Argentina has formally dismissed a criminal investigation into President Javier Milei and his sister, Karina Milei, concerning allegations of fraud linked to a cryptocurrency scheme. The decision marks the end of a legal challenge that had threatened significant political instability for the administration. Federal Judge Marcelo Martinez de Giorgi issued the dismissal at the request of prosecutors, concluding that the events in question did not meet the legal threshold for criminal liability.
The case originated from social media activity by the president in February 2025. Milei posted a link on the platform formerly known as Twitter, directing followers to purchase a newly launched digital asset called $Libra. At the time of the post, Milei stated that the cryptocurrency would assist in funding small businesses and startups. The publication of this link caused the price of the coin to surge dramatically within hours.
However, the market reaction was short-lived. Milei deleted the post shortly after it went live, and the value of $Libra subsequently plummeted. This rapid decline resulted in substantial financial losses for the majority of investors who had bought into the asset during the brief period of high demand. Critics and online observers characterized the sequence of events as a potential rug pull, a term used to describe scenarios where promoters attract buyers before abandoning the project and retaining the funds.
In response to the backlash, Milei maintained that he had acted in good faith. He argued that he was not promoting the cryptocurrency but merely sharing information about it. The president stated that he lacked detailed knowledge of the project at the time he posted the link. Upon learning more about the specifics of $Libra, he decided to remove the post and cease any further association with the asset.
The presidential office reinforced this defense by asserting that Milei had no involvement in the development or creation of the cryptocurrency. They emphasized that investors participated voluntarily and were aware of the inherent risks associated with such volatile digital assets. To address concerns about potential impropriety, the administration announced that the Anti-Corruption Office would conduct an independent review to determine if any rules had been violated.
The political ramifications of the incident were severe before the legal resolution. Opposition members of Congress initiated plans for impeachment proceedings against Milei, citing the financial harm inflicted on citizens and the perceived abuse of his platform. The controversy intensified public debate over the regulation of digital assets and the responsibilities of elected officials when engaging with speculative financial instruments on social media.
Judge Martinez de Giorgi’s ruling focused on the absence of proven deception. In dismissing the case, the judge noted that the reported events did not fall under a specific legal category for fraud. The court concluded that there was insufficient evidence to establish criminally relevant deception by the president or his sister. This determination effectively clears Milei of criminal charges related to the $Libra incident.
As of the latest reports, President Milei has not issued a public statement regarding the dismissal of the case. The resolution removes an immediate legal threat to his presidency but leaves lingering questions about oversight mechanisms for political figures interacting with unregulated markets. The outcome may influence future legislative efforts to clarify the boundaries between personal expression and financial promotion by government officials.
The incident highlights the growing intersection of digital finance and political communication in Argentina. While the legal case has closed, the economic impact on individual investors remains a point of contention. The administration’s stance that market participation is voluntary contrasts with critics’ views that public figures wield disproportionate influence over asset prices. This tension is likely to persist as new digital assets emerge and gain traction among retail investors.
Looking ahead, the dismissal does not preclude further scrutiny from non-judicial bodies or political opponents. The Anti-Corruption Office’s review may still yield findings regarding administrative or ethical violations, even if criminal charges are off the table. The case serves as a precedent for how Argentine courts interpret digital asset promotions by high-ranking officials, potentially shaping legal standards for similar incidents in the future.
Sources behind this briefing
Go to the original reporting
- BBC World↗Argentina drops investigation into President Milei over crypto fraud
