Argentinian judge drops fraud investigation into Milei over crypto scandal
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An Argentinian federal judge has dropped a criminal investigation into President Javier Milei and his sister Karina Milei over the collapse of a cryptocurrency he promoted online.
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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.
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“The reported events do not constitute a criminal offence,” the judge said in a ruling. He also wrote that investor losses and the rise and fall in the currency’s price were insufficient to establish fraud.
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In his ruling, Martinez de Giorgi said that Milei’s institutional standing could have given the launch “greater impact” when he posted about it, but that does not translate into a fraudulent scheme.
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Javier Milei recommended the little-known meme coin in a post on X in February 2025. He later deleted the post and denied any link to the cryptocurrency, whose value soon plunged.
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The judge also dismissed an investigation into US businessman Hayden Davis, who described himself as a “launch adviser” for the token. Davis has acknowledged that he held close to $100m after the crash and denies any wrongdoing.
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“For the first time in history, a President of the Nation was investigated with complete freedom, resulting in absolute proof of his innocence,” read a post shared on X by the official presidential office.
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“The question that remains is this: Who will take responsibility for having wasted Argentine taxpayers’ money and the President of the Nation’s time in a failed attempt at an institutional coup?” Milei is one of US President Donald Trump’s closest allies.
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Trump firmly backed him a year ago and has called him his “favourite president”. Trump made clear the support hinged on a victory for Milei’s party.
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“I’m with this man because his philosophy is correct,” he said ahead of a White House lunch with the Argentinian leader last year.
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“If he wins, we’re staying with him. And if he doesn’t win, we’re gone.” Earlier this month, Milei urged Trump to emerge stronger from the US midterm elections, saying the vote mattered for the West as a whole. Since taking office in 2023, Milei has laid off thousands of state employees, shut ministries, cut subsidies and reduced government-funded programmes.
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The measures were meant to fight high inflation, which has fallen to about 2 percent a month.
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Milei says his plan is working, claiming that Argentina has grown for 27 consecutive months and is expanding at four times its historical rate. When the coin crashed, Milei said he had acted “in good faith” and accused his political rivals of trying to exploit the situation.
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