Milei free of fraud after $Libra coin plunge

Federal judge Marcelo Martinez de Giorgi has dismissed the criminal investigation into Argentine President Javier Milei and his sister, Karina Milei. The judge concluded that the events surrounding the $Libra cryptocurrency do not fit a specific legal category and that no criminally relevant deception was proven. The ruling effectively closes the probe that had scrutinized the president's social media promotion of the coin.

The timeline of events began in February 2025 when Milei posted on X, formerly Twitter, about $Libra. He stated the coin would help fund small businesses and start-ups and included a direct link for purchase. The price of the asset climbed sharply following the post. Within hours, Milei deleted the message, and the coin's value subsequently plunged. Most investors lost the bulk of their money during this rapid drop.

The collapse triggered political backlash. Opposition members of Congress planned impeachment proceedings. Online critics labeled the incident a rug pull, a scheme where promoters attract buyers and then halt trading to retain funds. The presidential office responded by stating that Milei had no involvement in the development of $Libra. It also announced that the Anti-Corruption Office would examine whether the president acted improperly.

Milei has consistently rejected accusations of bad faith. In an interview with Todo Noticias, he said, "I didn't promote it, I merely shared it." He claimed he acted in good faith while the coin was rising. Regarding the deletion of the post, he said 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 put money into $Libra voluntarily and understood the risks.

Prosecutors asked for the case to be closed, a request Martinez de Giorgi granted. The judge noted that the reported events did not fall under a legal category. The dismissal removes Milei and his sister from the specific criminal proceedings regarding the coin's launch and subsequent crash. The ruling stands as a final determination on this particular fraud inquiry.

The case had drawn attention to the intersection of presidential influence and digital asset markets. The judge's decision aligns with the argument that the president's actions were communicative rather than manipulative in a criminal sense. The closure follows a period of intense scrutiny from both legislative opponents and financial observers.