A federal judge in Argentina has officially closed a criminal investigation into President Javier Milei and his sister, Karina Milei, regarding their alleged involvement in a cryptocurrency scandal. The case, which centered on the promotion of a digital asset known as $Libra, was dismissed by Judge Marcelo Martinez de Giorgi following a formal request from prosecutors who found no evidence of criminal wrongdoing.

The controversy began in February 2025 when President Milei shared a post on social media platform X regarding the $Libra coin, suggesting it could support small businesses and startups. Shortly after the endorsement, the cryptocurrency experienced a sharp surge in value, followed by a rapid collapse that resulted in significant financial losses for many investors. The sudden volatility led to accusations that the President had participated in a ‘rug pull’ scheme, prompting opposition lawmakers to call for impeachment proceedings.

In his ruling, Judge Martinez de Giorgi stated that the events in question did not constitute a legal violation and that no evidence of ‘criminally relevant deception’ had been established. Throughout the proceedings, the President maintained that he acted in good faith, noting that he was not involved in the development of the coin and that he deleted the post once he became aware of the project’s nature. The presidential office had previously stated that investors participated in the market voluntarily and were aware of the inherent risks associated with digital assets.

Key Takeaways

• A federal judge dismissed the criminal investigation into President Javier Milei regarding the $Libra cryptocurrency collapse.
• The court concluded that the President's actions did not meet the legal threshold for fraud or criminal deception.
• The President maintained that his social media post was not a formal promotion and that he removed it after learning more about the project's risks.

Editor’s Analysis & Impact

The dismissal of this case marks a significant political victory for President Javier Milei, effectively neutralizing a narrative that threatened to destabilize his administration early in his term. From a market perspective, the incident highlights the extreme volatility of the cryptocurrency sector and the outsized influence that high-profile political figures can exert on retail investor behavior through social media. While the legal system has cleared the President of criminal intent, the episode serves as a cautionary tale regarding the intersection of political influence and speculative digital assets. Moving forward, this outcome may lead to more stringent debates in Argentina regarding the regulation of digital assets and the ethical responsibilities of public officials when engaging with financial markets on social media platforms.

Frequently Asked Questions

Q: Why was President Javier Milei under investigation?
A: The President was investigated for his social media promotion of the $Libra cryptocurrency, which crashed shortly after he shared it, leading to financial losses for investors who accused him of participating in a fraudulent scheme.

Q: What was the court's final decision on the matter?
A: The federal judge dismissed the case, ruling that the events did not fall under a legal category of crime and that there was no evidence of criminal deception.