Argentina drops investigation into Milei over crypto fraud

A federal investigation into Argentine President Javier Milei and his sister, Karina Milei, regarding their alleged involvement in a cryptocurrency scandal has been officially closed. The decision to dismiss the case was made by Judge Marcelo Martinez de Giorgi, following a request from prosecutors, according to court documents.

President Milei has consistently denied any wrongdoing related to the cryptocurrency known as $Libra, which experienced a rapid decline shortly after he mentioned it in a social media post in February 2025. He claimed he acted "in good faith" when the value of the cryptocurrency rose before plummeting, resulting in significant losses for many investors. As of now, Milei has not publicly commented on the closure of the investigation.

In his ruling, Judge Martinez de Giorgi stated that the events described in the allegations did not constitute a legal offense and found no evidence of "criminally relevant deception." The controversy began when Milei promoted $Libra on the platform X, formerly known as Twitter, claiming it would support small businesses and startups. Following his endorsement, the price of the cryptocurrency surged, but it quickly fell after he deleted the post just hours later, leading to substantial financial losses for investors.

The fallout from the incident prompted opposition lawmakers to consider impeachment proceedings against the president. Some critics online accused Milei of orchestrating a "rug pull," a term used to describe a scenario where cryptocurrency promoters attract investors only to abandon the project and abscond with the funds raised. In response to these allegations, Milei stated, "I didn't promote it, I merely shared it," during an interview with the local news outlet Todo Noticias.

The presidential office has maintained that Milei had no involvement in the creation or development of $Libra and announced that the Anti-Corruption Office would investigate whether the president acted inappropriately. In his defense, Milei explained his decision to delete the post by stating that he was unaware of the project's particulars at the time and chose to stop promoting it once he learned more about it.

Furthermore, in a televised interview, Milei emphasized that the individuals who invested in $Libra did so "voluntarily" and were aware of the associated risks. The closure of the investigation marks a significant development for Milei, who has faced scrutiny over this cryptocurrency incident since its inception.