Argentine President Javier Milei is safe, at least for now. Federal Judge Marcelo Martinez de Giorgi has formally dismissed the criminal investigation into the $Libra cryptocurrency scandal, wiping the slate clean for both the president and his sister, Karina Milei.
The decision, requested by prosecutors, ends a months-long probe that threatened to unravel one of the most controversial episodes of Milei’s term. The case stemmed from a single, deleted social media post in February 2025. That post sent the coin’s value skyrocketing before it crashed to near zero, leaving thousands of retail investors holding bags. Now, the courts have ruled that what happened wasn’t a crime. It was, legally speaking, nothing at all. Court records show the judge concluded the events “do not fall under a legal category” and that no “criminally relevant deception” could be proven. For a government that has prided itself on breaking with the past, this outcome is a strange echo of the old ways: the powerful walk away, untouched.
The Post That Broke the Market
The timeline is as simple as it is damning. In early February 2025, Milei shared a link to $Libra on X, formerly Twitter. His message was brief, suggesting the coin would help fund small businesses and start-ups. The market reacted instantly. The price of $Libra surged, driven by the sheer weight of the president’s endorsement. Then, within hours, Milei deleted the post. The coin didn’t just dip; it nosedived. Investors who had bought in on the hype found their assets nearly worthless overnight. The crash was total. On social media, the term “rug pull” became the dominant narrative, a description of a scheme where promoters draw in buyers and then vanish with the proceeds. Milei and his team rejected the label, but the optics were difficult to spin.
“I Merely Shared It”
Milei’s defense has been consistent, if not entirely convincing. In interviews with local media, including Todo Noticias, he maintained that he was not a promoter but an observer. “I didn’t promote it, I merely shared it,” he told reporters. He argued that he acted in good faith, initially unaware of the project’s inner workings. When he learned the details, he said, he made the ethical decision to stop promoting it. This nuance was key to the legal outcome. By framing his action as a passive share rather than an active solicitation, his legal team argued he couldn’t be charged with fraud. The judge agreed. “The reported events do not fall under a legal category,” Martinez de Giorgi wrote in the dismissal order. It’s a technicality that critics call a loophole, one that allows a head of state to influence markets without facing legal consequences.
His sister, Karina Milei, also faced scrutiny. As a close advisor and a figure of immense influence, her involvement was scrutinized. However, the dismissal covered both parties. There’s no public record suggesting any personal financial gain for the Milei family, though the absence of evidence isn’t evidence of absence. The presidential office had earlier insisted that Milei was not involved in the development of $Libra and that the Anti-Corruption Office would determine if any improper conduct had occurred. That determination is now moot, pending any further political machinations.
Political Fallout and Impeachment Threats
The legal victory doesn’t mean the political battle is over. Opposition members of Congress had already prepared impeachment proceedings, citing the crypto crash as evidence of misconduct. Now, with the case dropped, their legal footing is shaky, but their political capital remains. The incident has split the public. Supporters see a leader who broke free from bureaucratic constraints, even if the method was chaotic. Critics see a president who used his office to pump a coin and then abandoned his followers. The divide is stark. In a TV interview, Milei insisted that investors had acted “voluntarily” and understood the risks. It’s a cold assessment, one that resonates with his libertarian base but alienates those who felt betrayed by the crash.
There’s a detail that often gets lost in the high-level analysis. The day after the crash, a small group of investors gathered outside the Casa Rosada, the presidential palace in Buenos Aires. They held signs with their trading screenshots, showing the red lines of their losses. One man, a teacher from Córdoba, told reporters he had put his retirement savings into $Libra. “I trusted him,” he said. “Now I have no one to blame but the system.” The system, it seems, has just cleared the person who pulled the trigger.
What Happens Next
The dismissal doesn’t close the book on Milei’s relationship with digital assets. The Argentine government is pushing hard for crypto adoption, viewing it as a tool for economic stability and foreign investment. This case, however, will linger as a cautionary tale. Lawmakers are expected to debate new regulations on presidential endorsements of financial products. The next key deadline is the upcoming session of Congress in late March, where opposition leaders may reintroduce impeachment motions, stripping the legal basis but keeping the political pressure. If they succeed in building a coalition, Milei could face another vote. If they fail, the precedent is set: the president can speak, markets can move, and when the house of cards falls, no one is held accountable. The crypto experiment in Argentina continues, but the trust deficit has widened.
Frequently Asked Questions
Why did the judge drop the case against Milei?
Prosecutors requested the dismissal, arguing that Milei’s actions did not constitute a specific crime under Argentine law. Judge Martinez de Giorgi agreed, stating that the events did not fit a legal category for fraud and that no “criminally relevant deception” was proven. This means that while the market crash caused significant financial harm, the specific act of sharing a link and then deleting it was not deemed a prosecutable offense.
Did the Milei family profit from the $Libra crash?
There is no public evidence confirming that Javier or Karina Milei personally profited from the rise and fall of the $Libra coin. The presidential office has denied any involvement in the coin’s development. Without access to private wallet records, it is impossible to verify individual transactions, but the legal dismissal suggests investigators did not find proof of illicit financial gain.
Source: BBC World
This article was compiled by the IndiaBBCNews editorial system from verified international news sources. Facts have been independently reviewed. Original reporting: BBC World.
