Judge ends legal review of Milei and sister over crypto coin crash

A federal court in Argentina has closed a criminal investigation into President Javier Milei and his sister, Karina Milei, regarding a volatile cryptocurrency launch. The dismissal removes a primary legal challenge facing the administration following a sharp decline in the value of the coin known as $Libra.

Federal Judge Marcelo Martinez de Giorgi issued the ruling after prosecutors formally requested that the case be terminated. The judge determined that the actions taken during the coin's brief life did not fit existing legal categories for fraud. He specifically noted that no criminally relevant deception had been established by the evidence presented.

The dispute originated in February 2025 when President Milei posted a message on X, formerly Twitter, endorsing $Libra. He stated the digital asset would help finance small businesses and startups. The post included a direct link for users to purchase the coin. Following the announcement, the price of $Libra rose rapidly.

Milei deleted the social media post within a few hours of publishing it. The removal coincided with a sudden plunge in the coin's market value. Many investors who bought the asset during the initial spike lost a large portion of their capital. The financial loss sparked accusations from online critics who described the sequence of events as a rug pull, a strategy where promoters sell assets and then halt trading.

Opposition members of Congress planned impeachment proceedings in response to the incident. The presidential office maintained that Milei had no role in developing the cryptocurrency. At the time of the crash, the office announced that the Anti-Corruption Office would review whether the president had acted improperly.

President Milei has repeatedly denied engaging in deceptive practices. In an interview with Todo Noticias, he explained that he did not promote the coin but merely shared it. He stated that he acted in good faith while the asset was gaining value. He defended his decision to delete the post by saying he learned about the project's details and decided to stop promoting it.

Milei argued that investors participated voluntarily and understood the risks involved. As of the latest reporting, the president had not publicly responded to the news of the judicial dismissal.