Argentina drops criminal investigation into President Milei over $Libra crypto crash

Federal judge dismisses case against president and his sister at prosecutors' request, finding no criminally relevant deception

By LineZotpaper AI staff

Published23 October 2026

Read Time2 min

A criminal investigation into Argentine President Javier Milei and his sister Karina Milei over their links to the collapse of the $Libra cryptocurrency has been dropped, after a federal judge dismissed the case at the request of prosecutors.

Federal judge Marcelo Martinez de Giorgi dismissed the case, court records show, ruling that "the reported events do not fall under a legal category" and that no "criminally relevant deception" had been proven.

The investigation stemmed from a February 2025 social media post in which Milei promoted the newly launched $Libra coin, saying at the time it would help fund small businesses and start-ups. The cryptocurrency's price shot up after the president shared a link to buy it, but crashed within hours once he deleted the post, leaving most investors with heavy losses.

Milei had denied promoting the coin, insisting "I didn't promote it, I merely shared it" in an interview with local media Todo Noticias. He said he had acted "in good faith" and defended deleting the post, saying he did not know "the details of the project and after learning about it, I decided not to continue promoting it". In a TV interview he said those who invested in $Libra had done so "voluntarily" and knew of the risks.

The presidential office maintained that Milei was in no way involved in the development of $Libra and announced that the Anti-Corruption Office would determine whether the president had acted improperly.

The episode prompted opposition members of Congress to plan impeachment proceedings, while some online accused Milei of a "rug pull", a scheme in which promoters draw in buyers only to halt trading and make off with the money raised. Milei has yet to respond to news of the case being dropped.

Analysis

Why This Matters

The ruling removes immediate criminal jeopardy for a head of state over a cryptocurrency venture that wiped out most investors
It highlights the difficulty of proving fraud in crypto promotion cases when figures say they merely shared information
Political fallout may continue: opposition impeachment plans and questions over accountability remain open

Background

The $Libra affair dates to February 2025, when Milei promoted the token on X as a way to fund small businesses and start-ups. The coin briefly soared after his endorsement before collapsing when he deleted the post, an episode critics and investors labelled a "rug pull". Opposition lawmakers moved toward impeachment, and prosecutors opened a criminal case. The dismissal now closes that inquiry at the request of prosecutors.

Key Perspectives

Prosecutors and the court: sought and granted dismissal, ruling the reported events did not fall under a legal category and no criminally relevant deception was proven. President Milei and the presidential office: maintain he acted in good faith, did not promote the coin but merely shared it, and was not involved in its development; investors were warned of the risks. Opposition lawmakers and aggrieved investors: had planned impeachment proceedings over the episode and allege a "rug pull" that cost most investors their money.

What to Watch

Whether opposition lawmakers revive impeachment efforts in Congress now that the criminal case has collapsed
The findings of the Anti-Corruption Office, which the government said would assess whether Milei acted improperly
Any civil litigation from investors seeking to recover their losses

Sources

Argentina drops investigation into President Milei over crypto fraud · BBC News

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10 claims in this story checked against 1 source: 9 supported.

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SupportedArgentina dropped the investigation into Milei over the $Libra cryptocurrency collapse.BBC News: “A criminal investigation into Argentine President Javier Milei and his sister's links to a cryptocurrency scandal has been dropped. ... The Argentinian president had denied promoting the newly launched cryptocoin $Libra, which collapsed shortly after he mentioned it in a social media post in February 2025.”
SupportedA federal judge dismissed the case against Milei and his sister at prosecutors’ request.BBC News: “The case against Milei and his sister Karina Milei was dismissed by federal judge Marcelo Martinez de Giorgi at the request of prosecutors, court records show.”
SupportedThe judge found that the reported events did not fall under a legal category and that no criminally relevant deception had been proven.BBC News: “Dismissing the case, the judge said "the reported events do not fall under a legal category", and concluded that no "criminally relevant deception" had been proven.”
Partly supportedMilei promoted the newly launched $Libra coin in a February 2025 social media post.BBC News: “Accusations of fraud arose when Milei posted on X, formerly Twitter, about the $Libra coin, which he said at the time would help fund small businesses and start-ups. The Argentinian president, though, insisted: "I didn't promote it, I merely shared it"”
SupportedMilei’s post said $Libra would help fund small businesses and start-ups.BBC News: “Accusations of fraud arose when Milei posted on X, formerly Twitter, about the $Libra coin, which he said at the time would help fund small businesses and start-ups.”
SupportedThe coin’s price rose after Milei shared a purchase link, then nosedived within hours after he deleted the post, causing major investor losses.BBC News: “The cryptocurrency's price subsequently shot up when the Argentine president shared a link to buy it. But, within a few hours, he deleted his post and the crypto nosedived in value, losing investors most of their money.”
SupportedMilei said he acted in good faith and denied promoting the coin in an interview with Todo Noticias.BBC News: “He said he had acted "in good faith" ... The Argentinian president, though, insisted: "I didn't promote it, I merely shared it" in an interview with local media Todo Noticias'.”
SupportedMilei defended deleting the post, saying he did not know the project’s details and decided not to continue promoting it after learning about it.BBC News: “Milei himself defended deleting his post, saying that at the time he did not know "the details of the project and after learning about it, I decided not to continue promoting it".”
SupportedThe presidential office said Milei was not involved in developing $Libra and announced that the Anti-Corruption Office would assess whether he acted improperly.BBC News: “The presidential office insisted that Milei was in no way involved in the development of $Libra and announced that the Anti-Corruption Office would determine if the president had acted improperly.”
SupportedMilei has yet to respond to the news that the case was dropped.BBC News: “Milei is yet to respond to news of the case being dropped.”