Legal Ruling Clears Presidential Administration
An Argentinian federal judge, Marcelo Martinez de Giorgi, officially dismissed a criminal investigation into President Javier Milei and his sister, Karina Milei, on Friday, October 23, 2026. The probe, which had shadowed the administration for months, centered on allegations of fraud linked to the promotion of the $Libra cryptocurrency. According to court records reported by Al Jazeera, the court concluded that the reported events did not constitute a criminal offense, effectively ending the inquiry into the president’s role in the token’s 2025 launch and subsequent collapse.
The investigation began after President Milei posted about the then-obscure $Libra token on X (formerly Twitter) in February 2025. The endorsement triggered a brief but significant market rally, followed by a sharp nosedive that resulted in substantial financial losses for investors. Critics and opposition lawmakers had accused the president of participating in a “rug pull” scheme, a term used in the digital asset industry to describe developers who draw in investments only to abandon the project and withdraw funds. As reported by AOL, blockchain researchers had identified approximately $99 million withdrawn from the marketplace by digital wallets linked to the project’s creator.
Judicial Rationale and Institutional Impact
In his formal ruling, Judge Martinez de Giorgi acknowledged that the president’s institutional standing likely amplified the token’s reach, stating that Milei’s endorsement could have given the project “greater impact” among potential investors. However, the judge emphasized that such influence does not inherently constitute a fraudulent scheme. The court found that investor losses and the extreme volatility of the asset’s price were insufficient evidence to establish “criminally relevant deception” under Argentine law.
The dismissal also extended to US businessman Hayden Davis, who had identified himself as a “launch adviser” for the $Libra token. Davis, who acknowledged holding nearly $100 million following the token’s crash, has consistently denied any wrongdoing, a position the court found insufficient to pursue further criminal charges. The president’s office celebrated the decision, framing the investigation as an “attempted institutional coup” and questioning who would be held accountable for the time and resources spent during the inquiry.
Political and Regulatory Stakes
The resolution of this case marks a critical milestone in the intersection of political influence and decentralized finance regulation. While the judicial system has cleared the president of criminal liability, the episode remains a point of contention regarding the responsibilities of high-ranking officials in the digital asset space. Milei, who has consistently maintained that he acted in “good faith” and deleted the post upon learning more about the project, faced potential impeachment proceedings initiated by opposition members of Congress throughout the investigative period.
Beyond the courtroom, the administration continues to focus on its broader economic agenda, characterized by aggressive austerity measures including the closure of ministries and the reduction of state subsidies. While the government claims these policies have successfully stabilized inflation and spurred growth, the crypto controversy highlighted the risks inherent in the unchecked promotion of volatile digital assets by public figures. The case serves as a precedent for how judiciary bodies may handle similar allegations involving social media influence and digital financial markets, balancing the potential for market manipulation against the protections of freedom of expression for public officials.