Legal Shield for Milei: Crypto Case Dropped After $Libra Crash

The legal uncertainty surrounding Argentine President Javier Milei’s involvement in a failed cryptocurrency venture has been resolved with the dismissal of a criminal case. Federal Judge Marcelo Martinez de Giorgi dropped the investigation on Thursday, following a request from prosecutors. The ruling effectively clears the president and his sister, Karina Milei, of formal fraud charges related to the $Libra token, a move that concludes a significant legal chapter in the administration's early tenure.

The judge’s decision hinges on the interpretation of financial transactions within the digital asset market. In his written order, Martinez de Giorgi stated that the reported events did not fit into a specific legal category for criminal fraud. He concluded that no criminally relevant deception had been proven. This determination means that the sharp rise and subsequent fall in the value of the coin will not be treated as a criminal matter by the courts, despite the significant losses incurred by individual investors.

The controversy began in February 2025 when the president posted about the newly launched $Libra coin on social media. On the platform X, formerly known as Twitter, Milei wrote that the coin would help fund small businesses and start-ups. He included a direct link to purchase the asset. Following this endorsement, the price of the token climbed sharply, attracting a wave of buyers who were drawn in by the presidential connection.

The momentum reversed quickly. Within hours of the initial post, Milei deleted the message, and the value of the coin plunged. Most investors who had bought in during the spike lost the bulk of their capital. The speed of the price action and the deletion of the promotional post fueled speculation about the nature of the transaction. Critics described the episode as a rug pull, a common scheme in the crypto world where promoters attract buyers and then halt trading to keep the raised funds.

The incident triggered a political response before it reached the final legal stage. Opposition members of Congress planned impeachment proceedings based on the episode. The presidential office responded by stating that Milei had no involvement in the development of $Libra. To address public concern, the administration announced that its Anti-Corruption Office would examine whether the president had acted improperly. This internal review paved the way for the subsequent judicial process.

Milei has consistently rejected the accusations of misconduct throughout the investigation. In an interview with the media outlet Todo Noticias, he clarified his role in the promotion of the asset. He said: I didn't promote it, I merely shared it. He maintained that he acted in good faith while the coin was rising in value. This defense focused on his intent and the voluntary nature of the investors' participation.

The president also provided a specific explanation for removing the social media post. He stated that he did not know the details of the project and that after learning about it, he decided not to continue promoting it. In a television interview, he argued that people who put money into $Libra had done so voluntarily and understood the inherent risks of the market. This narrative of informed voluntary action became a central part of the defense strategy.

With the case now dismissed, the immediate legal pressure on the administration has lifted. The president had not responded to news of the dismissal at the time of the original report. The decision marks a shift in focus for the market, removing the overhang of potential criminal liability from the presidential office. The outcome suggests that the legal system will continue to treat such high-profile crypto endorsements as civil or political matters rather than criminal fraud, unless more specific evidence of deception emerges in the future.