Argentina drops investigation into President Milei over crypto fraud

Federal judge Marcelo Martinez de Giorgi has dismissed the criminal investigation into Argentine President Javier Milei and his sister Karina Milei over allegations of involvement in a cryptocurrency fraud, court records reveal. The investigation was dropped at the request of prosecutors, who concluded that no "criminally relevant deception" had been proven.

President Milei had denied promoting the newly launched cryptocurrency $Libra, which collapsed shortly after he mentioned it in a February 2025 social media post. He claimed he had acted in good faith, stating that the cryptocurrency's value had risen before crashing, causing significant losses for most investors. The judge dismissed the case, stating that the reported events did not fall under a legal category and that no criminally relevant deception had been established.

Accusations of fraud arose when Milei posted on X, formerly Twitter, about the $Libra coin, which he claimed would help fund small businesses and start-ups. The cryptocurrency's price surged upon the president's mention, but it plummeted within hours after he deleted his post, leading to substantial financial losses for investors.

Opposition members of Congress initially planned impeachment proceedings, and some online accused Milei of a "rug pull" scheme. However, Milei insisted during an interview with local media that he merely shared the cryptocurrency post and did not promote it. He also stated that those who invested in $Libra had done so voluntarily and were aware of the associated risks.