In brief
A federal judge dismissed the criminal investigation into Argentine President Javier Milei and his sister over the alleged promotion of the $Libra cryptocurrency, after prosecutors requested the case be dropped. The probe had stemmed from Milei’s X post that hyped the coin, leading to a sharp price spike followed by a dramatic collapse that left many investors with heavy losses. Milei has denied any wrongdoing, claiming he simply shared the link in good faith and was unaware of the project’s details. While the dismissal lifts immediate impeachment pressure, questions remain about the regulatory framework for digital assets in Argentina.
Investigation Into Milei’s Crypto Pitch Dropped
Argentina’s federal court has officially dropped the criminal investigation that linked President Javier Milei and his sister Karina to a cryptocurrency scandal, after prosecutors requested the case be dismissed.
The probe stemmed from Milei’s February 2025 post on X, where he promoted the then-new digital coin $Libra, claiming it could fund small businesses and start‑ups. The coin’s price jumped dramatically after the tweet, only to crash a few hours later, wiping out most of the investors’ stakes.
Milei has consistently denied any role in developing $Libra, arguing he merely shared a link to the coin. In a recent interview, he insisted he was unaware of the project’s details and deleted the post once he learned more about its underlying risks.
“I acted in good faith when the cryptocurrency rose in value before crashing, and the losses were primarily borne by the investors,” Milei said. The president’s office also stated that the Anti‑Corruption Office should determine whether any improper conduct occurred.
Judge Marcelo Martínez de Giorgi ruled that the alleged events did not meet the legal definition of fraud and that there was no evidence of “criminally relevant deception.” The decision effectively removes the immediate impeachment pressure from the opposition.
While the case is dismissed for now, experts say the incident underscores the need for clearer regulation around crypto assets in Argentina. Investors and lawmakers alike will keep a close eye on how the government plans to protect the financial ecosystem in the wake of the $Libra collapse.
