Argentine Judge Halts Crypto Probe Involving President Milei

On October 24, Federal Judge Marcelo Martínez de Giorgi formally dismissed the criminal investigation into President Javier Milei and his sister Karina Milei regarding their alleged involvement in the LIBRA memecoin scandal. The ruling concluded that insufficient evidence existed to substantiate claims of fraud or deception.

A Cryptocurrency Storm Triggered by Social Media

The controversy began last year when Milei made a post about LIBRA on the social media platform X. The token's price experienced a brief but sharp increase following his endorsement. However, when Milei later deleted the post, LIBRA's value plummeted, creating significant market volatility.

In response to criticism, Milei stated that he merely shared someone else's post and did not engage in any marketing activities for the token. He maintained that his actions were in "good faith" and that he received no financial benefit.

Substantial Investor Losses Highlight Market Risks

The episode resulted in considerable financial fallout. A report from blockchain analytics firm Nansen indicated that approximately 86% of LIBRA traders incurred losses, totaling an estimated $251 million. In contrast, a small group of traders profited by around $180 million.

  • Extreme Volatility: LIBRA reached a high of $4.55 upon launch but collapsed to near zero within a week.
  • Political Repercussions: The incident prompted opposition lawmakers to draft impeachment motions against Milei.

Rising Trend in Cryptocurrency Scams

The LIBRA case is part of a broader pattern of security and regulatory challenges within the cryptocurrency space. Data reveals that crypto-related scams attracted at least $14 billion in on-chain value in 2025, a notable increase from $9.9 billion in 2024. This trend underscores the need for investor caution when dealing with assets driven by celebrity influence or social media hype.

While the dismissal of the investigation clears Milei of legal charges for now, the event has reignited discussions about the responsibility of public figures in the highly volatile cryptocurrency market.