Argentinian judge drops fraud investigation into Milei over $Libra collapse
A federal judge ruled that President Javier Milei’s promotion of the $Libra token did not constitute a criminal offence, ending the inquiry into him and his sister.
At a glance
- Judge Marcelo Martinez de Giorgi dropped the fraud investigation into Javier Milei and Karina Milei over the $Libra token collapse.
- The judge ruled that investor losses and price swings were insufficient to establish fraud.
- The inquiry into US businessman Hayden Davis was also dismissed; Davis denies wrongdoing.
An Argentinian federal judge has dropped a criminal investigation into President Javier Milei and his sister Karina Milei over the collapse of the $Libra cryptocurrency token. Judge Marcelo Martinez de Giorgi issued the decision on Friday, ending an inquiry into Milei’s role in promoting the token online.
In his ruling, the judge said investor losses and the token’s rise and fall in value were insufficient to establish fraud. He acknowledged that Milei’s institutional standing may have given the launch “greater impact” when he posted about it, but added that this does not amount to a fraudulent scheme.
Milei recommended the little-known meme coin in a post on X in February 2025. He later deleted the post and denied any link to the cryptocurrency, whose value soon plunged after a brief rally.
The judge also dismissed an investigation into US businessman Hayden Davis, who described himself as a “launch adviser” for the token. Davis has acknowledged holding close to $100 million after the crash and denies any wrongdoing.
The presidential office responded on X, calling it the first time in history a sitting president had been investigated with complete freedom and describing the outcome as proof of innocence. The post asked who would take responsibility for wasting taxpayers’ money and the president’s time in what it called a failed attempt at an institutional coup.
Milei, one of US President Donald Trump’s closest allies, took office in 2023. His government has cut thousands of state jobs, shut ministries and reduced subsidies in an effort to fight inflation, which has fallen to about 2 percent a month. Milei says Argentina has grown for 27 consecutive months and is expanding at four times its historical rate.
When the token crashed, Milei said he had acted in good faith and accused political rivals of trying to exploit the situation.
Source: Al Jazeera.
Questions and answers
- Why did the Argentinian judge drop the investigation into Javier Milei?
- The judge ruled that the reported events did not constitute a criminal offence and that investor losses and price changes were insufficient to establish fraud.
- Who else was cleared in the $Libra token investigation?
- The judge also dismissed an investigation into US businessman Hayden Davis, who described himself as a launch adviser and denies wrongdoing.
- What did Milei say about the cryptocurrency post?
- Milei recommended the token on X in February 2025, later deleted the post, denied any link, and said he acted in good faith.
