Judge dismisses fraud case against President Milei and sister over $Libra coin

Argentina’s legal system has closed a criminal probe into President Javier Milei and his sister Karina Milei regarding a cryptocurrency that lost most of its value shortly after launch. Federal Judge Marcelo Martinez de Giorgi dismissed the case on Thursday after prosecutors formally requested that the investigation be dropped. The judge’s written ruling stated that the reported events did not fit a specific legal category and that no criminally relevant deception had been proven.

The investigation focused on $Libra, a digital token that debuted in early 2025. The coin’s price spiked immediately after Milei posted about it on X, formerly known as Twitter. In that post, he claimed the token would help fund small businesses and startups and included a direct link for buyers. Within hours of the post going live, Milei deleted it, and the coin’s market value dropped sharply. Investors who bought the token during the brief surge lost the majority of their capital.

The incident triggered immediate political backlash. Opposition members of Congress moved to plan impeachment proceedings. Online commentators used the term rug pull to describe the event, a phrase referring to a scheme where promoters attract buyers to a cryptocurrency before halting trading and retaining the raised funds. Despite these accusations, Milei has maintained that he did not orchestrate the project’s development or its subsequent collapse.

In an interview with Todo Noticias, the president stated, I didn't promote it, I merely shared it. He explained that he acted in good faith while the token was rising in value. Regarding the decision to delete the social media post, Milei said he learned more about the project's details and decided not to continue promoting it. In a separate television appearance, he argued that investors had participated voluntarily and understood the inherent risks of the market.

The presidential office confirmed that Milei had no role in developing $Libra. At the time of the crash, the administration announced that the Anti-Corruption Office would review whether the president had acted improperly. That internal review appears to have concluded without finding grounds for a criminal charge. Milei had not issued a public response to the judge's dismissal at the time of reporting.

The dismissal ends the formal criminal inquiry but leaves the civil and political implications of the crash open. The judge’s decision relies on the definition of legal fraud rather than the financial impact on individual investors. The ruling stands as a final determination in this specific federal court matter.