A federal judge in Argentina has officially dropped a criminal investigation into President Javier Milei and his sister, Karina Milei, concerning the collapse of a cryptocurrency that the president had previously endorsed online. The decision, handed down by Judge Marcelo Martinez de Giorgi on Friday, brings an end to a legal inquiry that scrutinised the leader’s involvement in the launch and subsequent crash of the $Libra token.
In his ruling, Judge Martinez de Giorgi stated that the events under investigation did not reach the threshold of a criminal offence. The court documents specified that investor financial losses, combined with the extreme volatility of the digital token’s price, were not sufficient grounds to establish a charge of fraud. While the judge acknowledged that the president’s institutional status may have lent the cryptocurrency launch a significant level of visibility when he posted about it, he clarified that this influence does not translate into the mechanics of a fraudulent scheme.
The controversy stemmed from a social media post made by President Milei in February 2025, where he recommended the relatively obscure meme coin to his followers on X. Following a brief rally, the value of the token plummeted, leading to significant criticism. Milei subsequently deleted the post and maintained that he had acted in good faith, accusing his political opponents of attempting to leverage the market crash to damage his administration. He has consistently denied any direct link to the cryptocurrency’s underlying operations.
The investigation also included US businessman Hayden Davis, who had identified himself as a launch adviser for the $Libra token. Davis, who has been reported to hold nearly $100 million following the crash, has similarly denied any involvement in wrongdoing. The court ultimately dismissed the proceedings against him alongside those involving the president.
Following the ruling, the official office of the Argentine presidency released a statement on X, claiming the development was a moment of historical significance. The statement emphasised that the president had been investigated with complete freedom, which it argued resulted in absolute proof of his innocence. The administration further questioned the use of public resources to fund what it described as a failed institutional effort against the head of state.
This legal victory comes amidst a broader period of economic transformation in Argentina. Since assuming office in 2023, President Milei has implemented a rigorous austerity agenda, which has included the closure of government ministries, the reduction of state-funded programmes, the cutting of subsidies, and the dismissal of thousands of public sector employees. These policies were designed to combat the country’s high inflation rates, which the government reports have now declined to approximately 2 percent per month.
President Milei continues to defend his economic path, asserting that his administration’s measures are yielding tangible results. He claims that Argentina has experienced 27 consecutive months of economic growth, expanding at a pace four times higher than its historical average. While his domestic policies remain a subject of intense public debate, this judicial clearance provides the administration with a measure of relief from the legal pressures surrounding his previous digital asset endorsements.
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