Argentine Judge Dismisses Milei Crypto Fraud Investigation

An Argentine federal judge has dismissed a criminal investigation into President Javier Milei, his sister Karina Milei, and nine other defendants over a cryptocurrency promotion that ended in substantial investor losses. Judge Marcelo Martinez de Giorgi issued the ruling on Friday, October 23, 2026, accepting a prosecutor's request to close the case involving the $LIBRA token, which collapsed shortly after Milei promoted it online in February 2025.

The judge concluded that the available evidence did not establish criminal fraud. According to court records, the ruling also rejected allegations of abuse of authority and improper dealings involving public office, finding insufficient evidence that the cryptocurrency promotion involved criminally relevant deception or the misuse of state resources.

The investigation centered on a social media post published by Milei on February 14, 2025. The president shared information about the previously little-known token, which surged in value before collapsing within hours, leaving investors with substantial losses. The Argentine Times reported estimated losses of approximately US$100 million.

Martinez de Giorgi explained the legal basis for ending the investigation in his decision.

"The reported events do not constitute a criminal offence," Judge Marcelo Martinez de Giorgi said.

The judge determined that the token's dramatic price movements and investor losses alone did not prove fraud. He also acknowledged that Milei's position as president could have amplified the impact of his post without establishing that he had participated in a fraudulent scheme.

The court dismissed the case against Karina Milei, the president's chief of staff, after finding insufficient evidence that she had received payments for arranging meetings between her brother and people associated with the cryptocurrency project.

"Facilitating a contact or helping to organize a meeting does not, in itself, amount to influence peddling," Martinez de Giorgi wrote.

The nine other defendants cleared in the case included US entrepreneur Hayden Mark Davis, who was associated with the token's launch, businessman Mauricio Novelli, Manuel Terrones Godoy, former National Securities Commission adviser Sergio Morales, and five additional individuals. Davis had described himself as a launch adviser and acknowledged holding close to $100 million after the collapse, while denying wrongdoing.

Milei previously defended his conduct, saying he had acted in good faith when discussing the cryptocurrency. He deleted his original post after the token's price plunged and denied having a direct role in its development.

In an interview with Argentine television network Todo Noticias, Milei rejected the characterization of his social media activity as a formal endorsement.

"I didn't promote it, I merely shared it," Milei said.

He also argued that investors had made their own decisions and understood the risks associated with the cryptocurrency. His administration previously announced that the Anti-Corruption Office would examine whether his conduct had been improper.

Following the ruling, the official presidential office portrayed the investigation as evidence that the justice system had examined the president's conduct without interference.

"For the first time in history, a President of the Nation was investigated with complete freedom, resulting in absolute proof of his innocence," the presidential office said in a post on X.

The office also questioned who would be held accountable for the public expense and presidential time devoted to the investigation, describing the proceedings as an unsuccessful attempt to undermine the administration.

Milei separately demanded compensation for what he characterized as more than 20 months of accusations against him.

"And now, who is going to compensate me for a year, eight months and nine days of lies, slander and libel intended to tarnish my good name and honor?" Milei wrote on X.

The cryptocurrency controversy prompted political opposition and public criticism after the token's collapse. Some critics characterized the episode as a rug pull, a scheme in which cryptocurrency operators attract buyers before withdrawing funds or abandoning a project, leaving investors with sharply devalued assets.

The dismissal closes the Argentine criminal investigation unless the decision is successfully challenged. Separately, a New York court rejected a class-action lawsuit concerning $LIBRA at first instance in September 2026, citing deficiencies in the filing. That proceeding was distinct from the Argentine case.