Argentina drops investigation into President Milei over crypto fraud

A criminal investigation examining links between Argentine President Javier Milei and a collapsed cryptocurrency scandal has been officially dropped, closing a high-profile legal battle that had fueled impeachment calls and intense political friction. Federal Judge Marcelo Martinez de Giorgi dismissed the case against the president and his sister, Karina Milei, at the request of prosecutors, ruling that the events in question did not satisfy the criteria for a criminal offense.

The legal scrutiny began after Milei posted a recommendation on X for the little-known $Libra meme coin, telling his followers that the project would help fund small businesses and start-ups. According to reporting compiled across Yahoo News and Cryptobriefing, the digital token's price surged immediately following the presidential endorsement. Within hours, however, the post was deleted, and the cryptocurrency plummeted in value, leaving the vast majority of investors facing severe financial losses.

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Argentina president accused of fraud over crypto crash

Opposition lawmakers quickly mobilized in response to the market crash, with some members of Congress planning impeachment proceedings and critics accusing the administration of presiding over a rug pull scheme according to the Star Telegram. Legal complaints were filed in criminal court, with plaintiffs such as Jonatan Baldiviezo arguing that presidential actions were essential to the alleged fraud as reported by the BBC. Former President Cristina Fernández de Kirchner also lambasted the current leader on social media, while political adversaries labeled the episode an unprecedented scandal noted by the BBC.

Throughout the inquiry, Milei maintained that he had acted in good faith, explaining in television interviews that he was unaware of the project's details when he initially shared the link and decided to stop publicizing it once he learned more detailed by Yahoo News. He further argued that individuals who purchased the digital asset did so voluntarily and understood the associated risks according to Yahoo News reporting. The presidential office consistently denied any direct involvement in the development of the token, emphasizing that the Anti-Corruption Office would evaluate whether anyone had acted improperly per Yahoo News.

In his ruling, Judge Martinez de Giorgi acknowledged that the president's high institutional standing likely amplified interest in the coin's launch, but determined that such influence did not translate into a fraudulent scheme reported Cryptobriefing. Prosecutors, led by Eduardo Taiano, recommended dismissing the case after determining that the evidence fell short of establishing criminal deception or influence peddling according to Coinpedia. The court also cleared Karina Milei, finding no proof that she accepted payments to arrange meetings between her brother and project creators noted by Coinpedia, alongside dismissing inquiries into US businessman Hayden Davis and other associates such as Mauricio Novelli and Manuel Terrones Godoy reported Cryptobriefing.

Reactions to the dismissal were swift. The official presidential office published a triumphant statement on social media celebrating what it described as absolute proof of innocence, while questioning who would be held accountable for wasting taxpayer funds and presidential time on an institutional coup attempt reported Al Jazeera.

The crypto investigation unfolded against a broader backdrop of economic and political turbulence in Argentina. President Milei, a close ally of US President Donald Trump noted by Kucoin, has implemented sweeping austerity measures since taking office, including laying off thousands of state employees, cutting subsidies, and shuttering government ministries to combat inflation reported Al Jazeera. Simultaneously, members of his administration have faced parallel ethics controversies, including Cabinet Chief Manuel Adorni's recent admission regarding undeclared private earnings and tax filings reported the Buenos Aires Times.

As the legal proceedings conclude, attention shifts back to the political arena where opposition factions continue to weigh legislative pressure and public accountability measures. For ongoing updates regarding judicial developments and economic policy changes, consult Business coverage.