Judge Dismisses Crypto Case Against Argentine President

A significant legal chapter in the Argentine cryptocurrency dispute has ended with the dismissal of a criminal case against President Javier Milei and his sister, Karina Milei. Federal judge Marcelo Martinez de Giorgi ruled to close the investigation after prosecutors formally requested the termination of the proceedings. This decision resolves a legal battle that had persisted for over a year, following the abrupt and dramatic collapse of a digital token that gained popularity through a brief social media post by the head of state.

The judge’s written ruling provided the legal basis for the dismissal, stating that the reported events did not fit into a specific legal category. Martinez de Giorgi concluded that the evidence was insufficient to prove any criminally relevant deception. This finding suggests that the actions taken by the Milei family, while controversial, did not meet the high threshold required for a criminal conviction under current Argentine law.

The core of the dispute involves a token known as $Libra. The asset launched in early 2025 and saw a sharp increase in value shortly after President Milei mentioned it in a public post on X, formerly Twitter. In that post, the president claimed the coin would help finance small businesses and start-ups, and he included a direct link for followers to purchase the asset. The market reaction was immediate, with prices climbing rapidly as interest surged.

The momentum reversed within hours. President Milei deleted the social media post, and the value of $Libra plunged sharply. Many investors who had bought the token during the initial spike lost a large portion of their money. This swift rise and fall led to intense scrutiny of the transaction and the president’s role in promoting the asset.

The incident triggered a political reaction that went beyond the financial markets. Opposition members of Congress planned impeachment proceedings in response to the episode. Online critics used the term "rug pull" to describe the event, a phrase used in the crypto community to refer to a scheme where promoters attract buyers and then halt trading to retain the funds raised. The accusation suggested a deliberate manipulation of the market for personal gain.

President Milei has maintained that he was not responsible for the token’s development or its subsequent collapse. In an interview with the outlet Todo Noticias, he clarified his position, stating, "I didn't promote it, I merely shared it." He argued that he acted in good faith while the coin’s value was increasing and that he did not have detailed knowledge of the project’s mechanics at the time of his post.

The president also addressed the decision to remove the post from his social media feed. He explained that he learned more about the project after sharing the link and decided to stop promoting it based on that new information. In a separate television interview, he emphasized that investors had entered the market voluntarily and understood the inherent risks associated with cryptocurrency trading.

The presidential office issued statements confirming that Milei had no involvement in the technical creation of $Libra. The administration also announced that the Anti-Corruption Office would examine whether the president’s actions were improper, although this internal review has now been effectively concluded by the judicial dismissal. At the time of the original reporting, the president had not issued a public response to the news of the case being dropped.

The closure of this case marks a legal victory for the administration, though the political debate over the role of cryptocurrencies in Argentine policy may continue. The decision highlights the challenges courts face in applying traditional fraud laws to the fast-moving and complex world of digital assets. For now, the criminal chapter of the $Libra saga is closed, leaving the financial and political implications to be debated in the broader public square.