Argentina judge ends fraud investigation into Milei over cryptocurrency collapse

A federal judge in Argentina has ended a criminal investigation into President Javier Milei and Milei's sister, Karina Milei, over a cryptocurrency that collapsed after Milei promoted the token online. Court records show Judge Marcelo Martinez de Giorgi issued the decision on Friday. The inquiry concerned Milei's involvement in launching the $Libra token, whose price briefly rose before collapsing.

Martinez de Giorgi ruled that the events under investigation did not amount to a criminal offence. The judge found that investor losses and fluctuations in the token's price were not enough to establish fraud. Martinez de Giorgi said Milei's position as president could have amplified the launch through Milei's online promotion, but did not establish a fraudulent scheme.

Milei promoted the little-known meme coin on X in February 2025. Milei subsequently removed the post and denied any connection to the cryptocurrency, whose value soon fell sharply. After the collapse, Milei said Milei had acted "in good faith" and accused political opponents of seeking to exploit the episode.

The judge also ended an investigation into US businessman Hayden Davis, who identified himself as a "launch adviser" for the token. Davis has acknowledged holding close to $100 million after the crash and denies wrongdoing.

The official presidential office shared a post on X claiming the investigation had proceeded freely and had conclusively established Milei's innocence. The post characterized the case as a failed attempt at an institutional coup and demanded accountability for wasting taxpayers' money and the president's time.

Milei is among US President Donald Trump's closest allies. Trump strongly supported Milei a year ago and has described Milei as Trump's "favourite president". Trump made continued support conditional on Milei's party winning. Before a White House lunch with Milei last year, Trump praised Milei's philosophy and said support would end if Milei lost. Earlier this month, Milei urged Trump to gain strength from the US midterm elections, saying the outcome mattered to the entire West.

Milei has dismissed thousands of public employees since becoming president in 2023. Milei has also closed ministries, reduced subsidies and cut publicly funded programmes. The measures aimed to curb high inflation, which has declined to about 2% per month. Milei says the economic plan is succeeding. Milei claims Argentina's economy has grown for 27 months in succession and is expanding at four times Argentina's historical rate.