Judge Drops Case Against Milei After $Libra Coin Collapse

Federal Judge Marcelo Martinez de Giorgi has formally dismissed the criminal investigation into Argentine President Javier Milei and his sister, Karina Milei. The decision follows a request from prosecutors and concludes a high-profile legal dispute over the rapid rise and fall of a specific digital asset. In his ruling, the judge stated that the reported events do not fit into any existing legal category. He further noted that no criminally relevant deception had been proven during the inquiry.

The legal action stemmed from the launch of $Libra, a new cryptocoin that collapsed shortly after the president mentioned it on social media in February 2025. At that time, Milei posted on the platform X, formerly known as Twitter, claiming the coin would help fund small businesses and start-ups. He included a link to purchase the asset, which caused its price to climb sharply. However, within a few hours, the president deleted the post, and the coin's value subsequently plunged. Most investors who had bought into the project lost the majority of their money.

The episode triggered significant political backlash. Opposition members of Congress planned impeachment proceedings in response to the incident. Critics online accused the president of executing a rug pull. This term describes a scheme where promoters attract buyers for a cryptocurrency and then halt trading to retain the funds raised from sales. Despite the intense scrutiny, the presidential office maintained that Milei had no involvement in the development of the coin.

Milei has consistently rejected the accusations of fraud. In an interview with Todo Noticias, he clarified his role by stating, "I didn't promote it, I merely shared it." He argued that he acted in good faith while the coin was rising in value. The president also defended his decision to delete the social media post. He explained that he did not know the details of the project initially, but after learning more, he decided not to continue promoting it.

During a television interview, the president argued that those who invested in $Libra did so voluntarily and understood the inherent risks. The presidential office announced at the time of the incident that the Anti-Corruption Office would examine whether the president had acted improperly. That internal review was part of the broader response to the scandal, which had threatened to destabilize his early tenure.

The dismissal of the case marks a significant conclusion to the legal phase of the controversy. While political debates may continue, the federal court has now ruled that the specific actions taken by the president regarding $Libra did not amount to a crime. This decision aligns with the prosecution's view that the facts did not support a criminal charge.

As of the original report, Milei had not publicly responded to the news of the dismissal. The case involved both the president and his sister, who serves as a key figure in his administration. The closure of the investigation ends the formal criminal probe, though the financial losses of early investors remain a point of contention among his political opponents.