Argentinian judge clears Javier Milei in $Libra cryptocurrency fraud case

An Argentine federal judge on Friday dismissed the criminal probe into President Javier Milei and his sister Karina over the collapse of the $Libra cryptocurrency that Milei promoted on social media. The decision, issued by Judge Marcelo Martinez de Giorgi, ends a months‑long inquiry into whether the president’s online endorsement constituted fraud.

The investigation began after Milei posted about the little‑known meme coin in February 2025, urging followers to buy it. The token surged briefly before plummeting, wiping out millions of pesos in investor losses. Prosecutors argued that Milei’s official status amplified the coin’s reach and that the sudden price swing suggested a deceptive scheme. The case also targeted U.S. businessman Hayden Davis, who called himself a “launch adviser” and was reported to have held nearly $100 million after the crash.

Martinez de Giorgi ruled that the facts do not meet the legal definition of a criminal offense. He said the loss of investor money and the token’s volatility were insufficient to prove fraud, even though Milei’s position may have given the launch “greater impact.” The judge also cleared Davis of wrongdoing. The presidential office posted on X that the ruling proves the president’s innocence and questioned who will answer for the wasted public resources. Milei, who deleted his original post and denied any link to the token, said he acted “in good faith” and accused political rivals of exploiting the episode.

The case closes a rare legal challenge to a sitting Argentine president, but it does not erase the political controversy surrounding Milei’s tenure. The leader, a close ally of former U.S. President Donald Trump, has pursued sweeping economic reforms, cutting ministries, slashing subsidies and laying off thousands of state workers to curb inflation, which now runs at about 2 percent a month. Milei claims the country has grown for 27 consecutive months at four times its historic rate. Critics say the crypto episode highlights the risks of his unorthodox approach and may fuel opposition ahead of upcoming elections. The next focus will be on whether Milei’s reforms can sustain the fragile recovery while his political allies, including Trump, watch closely.