Javier Milei cleared as Argentine judge dismisses crypto fraud inquiry

An Argentine federal court has dismissed a criminal inquiry into President Javier Milei and his sister Karina Milei regarding the sudden collapse of a cryptocurrency token, according to official court documents.

Federal Judge Marcelo Martinez de Giorgi closed the matter following a request from prosecutors, ruling that the reported circumstances failed to meet the criteria for a criminal offense. The judge determined that authorities found no evidence showing any legally relevant deception had taken place.

The legal scrutiny stemmed from a February 2025 incident involving a newly introduced digital token named $Libra. At the time, Milei shared a post on the social media platform X, describing the coin as an instrument to support emerging enterprises and small businesses. He included a direct purchase link, triggering an immediate and steep climb in the token's market price.

However, the president took down the post just hours after publishing it. The market value of $Libra immediately plummeted, wiping out the vast majority of capital committed by purchasers. The rapid crash prompted allegations across social platforms that the episode was a fraudulent "rug pull," a scheme where promoters inflate an asset before abruptly abandoning it and pocketing the proceeds.

Political opponents in the Argentine Congress responded to the fallout by threatening impeachment proceedings against the president. Meanwhile, the executive office distanced Milei from the coin's creators, maintaining that he had no role in designing or releasing the digital asset. Officials also stated that the nation's Anti-Corruption Office would review the situation to determine if any ethical standards had been violated.

Throughout the controversy, Milei consistently rejected accusations of fraud. In a television interview with Todo Noticias, he argued that he had merely shared information rather than formally endorsing the project, stating that he had acted in good faith. He explained that he removed the message after realizing he did not fully understand the specifics of the initiative.

Milei also argued that buyers participated of their own free will and should have understood the inherent hazards of digital asset trading. Representatives for the president had not immediately issued a statement regarding the judge's decision to close the inquiry.