Argentine Court Dumps Crypto Case Against Milei, Ending Legal Threat

The Argentine judicial system has removed a major legal obstacle for President Javier Milei by dismissing a criminal fraud investigation tied to the $Libra cryptocurrency. Federal judge Marcelo Martinez de Giorgi closed the case following a request from prosecutors, determining that the specific actions taken by the president did not fit existing legal definitions of fraud. The ruling explicitly stated that no "criminally relevant deception" had been proven in the matter.

The legal dispute traces back to February 2025, when Milei posted a message on X, formerly Twitter, promoting the newly launched coin. In that post, he claimed the token would help fund small businesses and start-ups while providing a direct link for users to purchase it. The price of $Libra rose sharply following the announcement. However, within a few hours, Milei deleted the post, and the coin's value subsequently plunged. Investors who bought during the initial surge lost the majority of their capital in the subsequent drop.

The market reaction and the deletion of the post triggered a political crisis. Opposition members of Congress prepared impeachment proceedings against the president. Online critics labeled the event a "rug pull," a common scheme where promoters attract buyers to a cryptocurrency before halting trading to retain the raised funds. The presidential office maintained that Milei had no role in developing the coin and tasked the Anti-Corruption Office with reviewing his conduct. That internal review did not lead to immediate charges, allowing the legal process to continue until the recent dismissal.

Milei has consistently defended his actions in media appearances. In an interview with Todo Noticias, he argued that he did not promote the asset but merely shared it. He stated that he acted "in good faith" while the coin's value was increasing. When asked about deleting the post, he explained that he did not know the full details of the project and decided to stop promoting it after learning more. He also contended that investors entered the market "voluntarily" and understood the associated risks.

The dismissal ends the formal criminal inquiry, though the political fallout continues. The judge's decision relies on the technical finding that the events do not fall under a specific legal category for fraud. Milei had not issued a public response to the news of the dismissal at the time of reporting. The case's closure removes a potential liability from the president's record, though the financial losses of individual investors remain a point of contention in public discourse.