An Argentine federal judge on Friday, October 23, 2026, dismissed a criminal investigation into President Javier Milei and his sister, Karina Milei, regarding their involvement with a cryptocurrency that lost significant value. Judge Marcelo Martinez de Giorgi ruled that the promotion of the token, known as $Libra, did not constitute a fraudulent scheme or a criminal offense. The decision followed a request from prosecutors to drop the case.
The investigation began after President Milei shared a post about the cryptocurrency on the social media platform X in February 2025. Following the post, the coin's value experienced a brief rally before Milei deleted the message. The cryptocurrency subsequently crashed, causing investors to lose most of their money. The collapse led to plans for impeachment proceedings from opposition members of Congress and allegations of a "rug pull"—a term describing a scheme where developers attract investment to inflate a token's price before suddenly withdrawing and ending trade.
In his ruling, Judge Martinez de Giorgi stated that while Milei's institutional position may have increased the impact of his social media post, "criminally relevant deception" had not been proven. The judge also dismissed an investigation into Hayden Davis, a U.S. businessman who served as a "launch adviser" for the token. Davis, who denied any wrongdoing, acknowledged holding nearly $100 million after the market crash. Blockchain researchers reported that approximately $99 million was withdrawn from the marketplace by digital wallets linked to the coin's creator.
Argentina's fintech chamber had previously characterized the event as a potential "rug pull." The ruling indicates that a surge and subsequent crash in asset prices following a public official's comments are not, by themselves, sufficient evidence of a fraudulent scheme.
Following the ruling, the Argentine presidential office issued a statement on X asserting that the investigation provided "absolute proof" of Milei's innocence. The office also questioned who would be held responsible for the use of taxpayer funds during the inquiry. While the criminal case has concluded, the Anti-Corruption Office had previously been tasked with determining if the president's actions were improper. The decision on Friday, October 23, 2026, is final unless appealed by prosecutors.