BUENOS AIRES, ARGENTINA | TUNGARU PRESS | October 25, 2026
An Argentine federal judge has dismissed a criminal investigation into President Javier Milei and his sister, Karina Milei, over their alleged involvement in a cryptocurrency controversy that attracted international attention after a digital token dramatically lost its value.
The ruling, issued on Friday, October 23, found insufficient evidence of fraud in connection with the promotion and collapse of the cryptocurrency known as Libra.
Federal Judge Marcelo Martínez de Giorgi had been examining whether Milei's public endorsement of the token played a role in a potentially fraudulent scheme.
However, the judge concluded that the president's promotion of the cryptocurrency did not, by itself, establish criminal wrongdoing.
The decision also cleared American businessman Hayden Davis, who had described himself as an adviser involved in the token's launch.
How the Cryptocurrency Controversy Began
The controversy began in February 2025 when President Milei promoted Libra, a relatively unknown cryptocurrency, through a post on the social media platform X.
His endorsement quickly attracted attention from investors, contributing to a sharp increase in the token's market value.
However, the excitement was short-lived.
Libra's value soon collapsed, raising questions about the circumstances surrounding its launch and the involvement of individuals connected to the project.
Milei subsequently deleted his social media post and denied having any business relationship with the cryptocurrency.
The incident prompted allegations that investors had been misled and led to a criminal investigation into whether fraudulent activities had taken place.
Judge Finds No Evidence of Fraud by Milei
In his ruling, Judge Martínez de Giorgi acknowledged that Milei's position as Argentina's president could have increased public interest in the cryptocurrency.
The judge recognised that an endorsement from a prominent political leader might influence investors and give a digital asset greater visibility.
However, he determined that the president's public status and social media promotion were not sufficient evidence of a fraudulent operation.
According to the court's findings, there was no established basis for pursuing criminal fraud charges against Milei in connection with the token's launch.
The investigation involving his sister, Karina Milei, who serves as General Secretary of the Presidency, was also dismissed.
The ruling brings an end to this criminal investigation into the individuals named in the decision.
Milei Maintains He Acted in Good Faith
President Milei has consistently denied wrongdoing in connection with the Libra controversy.
Following the cryptocurrency's collapse, he maintained that he had promoted the project without knowing all the details behind it.
Milei said he withdrew his public support after learning more about the initiative.
He also accused political opponents of attempting to exploit the controversy for political advantage.
The president argued that his initial endorsement had been made in good faith and rejected suggestions that he had knowingly participated in a fraudulent investment scheme.
Questions Raised Over Millions in Cryptocurrency Withdrawals
Although the investigation into Milei has been dismissed, the Libra controversy raised wider concerns about transparency and investor protection in cryptocurrency markets.
Blockchain researchers previously reported that approximately $99 million worth of cryptocurrency had been withdrawn from the token's trading pool through eight digital wallets linked to its creator.
The withdrawals attracted scrutiny because of the token's sudden rise and subsequent collapse.
At the time, Argentina's financial technology industry chamber suggested that the incident could potentially have involved a practice commonly known as a “rug pull.”
A rug pull occurs when those behind a cryptocurrency project attract investors, increase the token's value and then withdraw funds or sell their holdings, potentially leaving other investors facing substantial losses.
However, concerns about a possible rug pull do not, on their own, establish that a particular individual committed fraud.
American Businessman Also Cleared
The court also dismissed the criminal investigation into American businessman Hayden Davis.
Davis had previously identified himself as a launch adviser for Libra.
He acknowledged holding close to $100 million following the cryptocurrency's collapse but denied engaging in wrongdoing.
Judge Martínez de Giorgi's decision means the criminal allegations examined in this investigation will not proceed against Davis.
The ruling represents a significant development in a controversy that had drawn attention to the involvement of public officials and business figures in speculative digital assets.
Cryptocurrency Scandal Highlights Investment Risks
The Libra case has renewed discussion about the risks associated with cryptocurrencies, particularly digital tokens that experience rapid price increases following endorsements by influential public figures.
Unlike traditional financial assets, some cryptocurrencies can be highly volatile, with prices rising or falling sharply over short periods.
Public endorsements may generate substantial investor interest, but they do not necessarily guarantee that a project is financially sound or that investors will be protected from losses.
The controversy also highlights the importance of transparency when political leaders publicly discuss financial products.
While the Argentine court found no evidence sufficient to establish fraud by Milei and the other individuals investigated, the episode demonstrates how quickly public attention can influence speculative markets.
A Significant Legal Victory for Milei
The dismissal of the investigation marks an important legal development for President Milei, whose endorsement of Libra had generated criticism and questions about his judgment.
The judge's decision distinguishes the political controversy surrounding the cryptocurrency from the legal requirement to establish evidence of criminal fraud.
For Milei, the ruling removes the immediate threat posed by this particular criminal investigation.
However, the broader debate over cryptocurrency promotion, investor protection and the responsibilities of influential public figures is likely to continue.
The case serves as a reminder that while cryptocurrency endorsements can generate enormous market interest, proving criminal wrongdoing requires evidence beyond a token's sudden rise and collapse.
Original reporting: Leila Miller, Reuters, October 23, 2026.
Editing: Iñigo Alexander and Rosalba O'Brien.
Source: Reuters
Adapted and rewritten for Tungaru Press
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