Federal judge clears Argentine president of crypto fraud

A federal judge in Argentina has dismissed the criminal case against President Javier Milei and his sister, Karina Milei, regarding the collapse of the $Libra cryptocurrency.

Judge Marcelo Martinez de Giorgi issued the ruling after prosecutors requested the case be closed. The judge determined that the events described in the investigation did not fit a specific legal category and that no criminally relevant deception had been proven.

The legal dispute began in February 2025 when the president posted on X, formerly Twitter, about the newly launched coin. He stated that the token would help fund small businesses and start-ups and included a link for users to purchase it. The price of $Libra climbed sharply following the announcement.

Within a few hours, the president deleted the post, and the value of the coin plunged. Investors who had bought in during the spike lost most of their money. The rapid rise and fall of the token prompted opposition members of Congress to prepare impeachment proceedings. Online critics labeled the event a rug pull, a strategy where promoters halt trading to keep the funds raised from sales.

Milei has rejected the fraud allegations throughout the investigation. In an interview with Todo Noticias, he said, "I didn't promote it, I merely shared it." He described his actions as being in good faith while the coin's value was increasing. He explained that he deleted the post because he did not know the details of the project and decided not to continue promoting it after learning more. In a television interview, he argued that investors purchased the token voluntarily and understood the risks.

The presidential office maintained that the president had no involvement in the development of $Libra. At the time of the crash, the office announced that the Anti-Corruption Office would examine whether the president had acted improperly. That review has now concluded with the judge's decision to drop the case.

The case was formally closed in court records on October 23, 2026. The president had not responded to the news of the dismissal at the time of the original report.