Argentinian judge drops fraud investigation into Milei over crypto scandal

Judge Marcelo Martinez de Giorgi issued the decision on Friday, according to court records, ending an inquiry into Milei's role in the launch of the $Libra token, which crashed after a brief rally. The judge stated that "the reported events do not constitute a criminal offence" and that investor losses were insufficient to establish fraud.

Judge's reasoning

In his ruling, Martinez de Giorgi acknowledged that Milei's institutional standing could have given the launch "greater impact" when he posted about it on X in February 2025, but emphasized that this does not translate into a fraudulent scheme. The president later deleted the post and denied any connection to the cryptocurrency, whose value soon plummeted.

Political fallout

The presidential office celebrated the decision on X, stating: "For the first time in history, a President of the Nation was investigated with complete freedom, resulting in absolute proof of his innocence." The post questioned who would be held accountable for "having wasted Argentine taxpayers' money and the President of the Nation's time in a failed attempt at an institutional coup."

International connections

Milei, who is one of US President Donald Trump's closest allies, received firm backing from Trump a year ago. The American leader has called Milei his "favourite president" and made clear that support depended on Milei's party winning elections. Earlier this month, Milei urged Trump to emerge stronger from US midterm elections, saying the vote mattered for the West as a whole.

Domestic policies

Since taking office in 2023, Milei has implemented austerity measures including layoffs of thousands of state employees, ministry closures, subsidy cuts, and reduction of government programs. These policies helped reduce monthly inflation to about 2 percent, with Milei claiming Argentina has grown for 27 consecutive months at four times its historical rate.