Judge Drops $Libra Crypto Case Against President Milei

The value of a newly launched cryptocurrency called $Libra plummeted within hours of its creation, leaving many investors with significant losses. This sharp decline triggered a formal criminal investigation into Argentine President Javier Milei and his sister, Karina Milei. On Thursday, federal judge Marcelo Martinez de Giorgi officially dismissed the case. The decision follows a request from prosecutors who sought to close the matter. The judge ruled that the reported events did not fit into a specific legal category. He further concluded that no criminally relevant deception had been proven by the evidence.

The controversy began in February 2025 when President Milei posted on X, formerly known as Twitter, about the new coin. He stated that the cryptocurrency would help fund small businesses and start-ups. The post included a direct link for users to purchase the asset. Following this endorsement, the price of $Libra climbed sharply. However, the momentum did not last. Within a few hours, Milei deleted the social media post. The coin's value then plunged, and most people who had invested lost the bulk of their money.

The episode quickly became a political issue. Opposition members of Congress planned impeachment proceedings against the president. Critics online used the term rug pull to describe the incident. This term refers to a scheme where promoters attract buyers to a cryptocurrency and then halt trading to keep the raised funds. Despite the allegations, Milei has consistently rejected the accusations. He clarified his role in an interview with Todo Noticias, stating, I didn't promote it, I merely shared it.

The president argued that he acted in good faith while the coin was rising in value. He defended his decision to delete the post by explaining that he did not know the details of the project. He said that after learning more about it, he decided not to continue promoting it. In a television interview, Milei also argued that people who put money into $Libra had done so voluntarily. He maintained that these investors understood the risks involved in such a volatile market.

The presidential office maintained that Milei had no involvement in the development of $Libra. At the time of the incident, the office announced that the Anti-Corruption Office would examine whether the president had acted improperly. The review process led to the criminal investigation that has now been dropped. The dismissal marks the end of the formal legal scrutiny regarding the $Libra launch and its subsequent crash.

The case involved a complex interplay between social media influence and financial markets. The judge's ruling suggests that while the events were notable, they did not meet the threshold for criminal liability under the current legal framework. This outcome may influence how future interactions between public figures and digital assets are viewed by courts. The dismissal does not address potential civil claims or political consequences, but it clears the criminal record of the president and his sister in this specific matter.

At the time of the original report, Milei had not responded to news of the dismissal. The closure of the case provides a definitive end to the criminal proceedings. It highlights the challenges in applying traditional legal standards to the fast-moving world of cryptocurrency. For now, the legal chapter of the $Libra scandal is closed, leaving the political and economic discussions to continue.