Argentina has dropped its criminal investigation into President Javier Milei and his sister, Karina Milei, over their alleged links to the LIBRA meme coin scandal. Federal Judge Marcelo Martínez de Giorgi dismissed the case, which centered on Milei's promotion of the token that later collapsed, according to Reuters. The ruling closes the criminal track of an episode that also triggered an impeachment push in Congress and put a global spotlight on how quickly meme-coin markets can move on a single political endorsement.

Last year, Milei sparked a brief price rally by endorsing LIBRA on X. He later distanced himself from the project and deleted his post before the coin crashed. The president has insisted his intentions were entirely "in good faith" during the cryptocurrency's upward trend, before the downturn that ruined most investors.

"I was not aware of the details of the project, and once I found out, I decided not to continue giving it publicity," he said.

Judge finds no proof of deceit or fraud

Judge Martínez de Giorgi dismissed the case against Milei after finding no proof of deceit or fraud, and no indication that the alleged incidents fit any particular legal category. As reported by Cryptopolitan, the federal judge nevertheless emphasized that the president's institutional position could have amplified the significance of his social media post. That observation captured the central tension of the case: the endorsement came from a sitting head of state, and the rally that followed its publication showed how directly token markets can react to a political figure's words.

The fraud allegations emerged soon after Milei promoted $LIBRA on his social media account, suggesting it would help finance startups and small businesses. The currency rose in value after the endorsement, then fell sharply once he removed the post. Following the crash, opposition members of Congress began preparing an impeachment motion, while online critics accused the president of a "rug pull."

Blockchain data added to the scrutiny of the token's collapse. A report by cryptocurrency analytics firm Nansen found that 86% of LIBRA traders lost a combined $251 million, while a smaller group of traders earned $180 million in profits. The token reached $4.55 shortly after launch and lost most of its value within a week.

Milei argued that sharing the post did not amount to advertising the cryptocurrency. In separate remarks, he said he knew little about the project when he published the post and stopped discussing the currency once he gained a better understanding of it.

Chainalysis: scam-linked crypto drew at least $14 billion in 2025

The LIBRA episode unfolded amid a broader surge in crypto fraud. According to Chainalysis, cryptocurrencies associated with scams collected at least $14 billion on-chain in 2025, a significant increase from the $9.9 billion first reported for 2024 — a figure later adjusted to $12 billion, consistent with the company's $12.4 billion estimate.

Scam-related funds have grown sharply as impersonation schemes rose by 1,400%. High-yield investment programs and pig butchering continue to lead in overall volume, but scam tactics are increasingly converging: fraudsters now combine AI tools, sophisticated SMS phishing, and extensive money-laundering networks to maximize their reach.

A July 2025 study by J.P. Morgan found that cybercriminals are increasingly using AI-generated content and deepfakes to trick victims through convincing impersonations in financial and romance scams. Scams with on-chain links to AI vendors collect an average of $3.2 million per operation — roughly 4.5 times the $719,000 average recorded by scams without such connections, according to the bank's report.

Enforcement actions have followed. In July, the Cyber Fraud Task Force seized more than $25 million in cryptocurrency tied to transnational fraud rings, according to a joint announcement by the U.S. Secret Service and the U.S. Attorney's Office for the District of Columbia. These assets add to $800 million recovered through the Scam Center Strike Force, an initiative launched in 2025 by U.S. Attorney Jeanine Pirro to protect residents of the United States and Canada.

"This seizure is the result of months of tireless work by Washington Field Office investigators, who are among the best in the world at tracking down cyber criminals and tracing their illicit transactions," said Special Agent in Charge Tara McLeese of the U.S. Secret Service's Washington Field Office. She also encouraged anyone who suspects they have been targeted by these scams or similar crypto-related offenses to seek assistance.

A legal chapter closes, but losses remain

The dismissal closes a significant chapter in the legal scrutiny surrounding LIBRA, though it does not erase the financial losses reported by traders. The case also highlights the risks associated with meme coins, whose prices can swing sharply following endorsements from influential figures. For market participants, the episode underscores the importance of conducting independent research on cryptocurrency projects rather than relying solely on public endorsements. Whether the affair prompts tighter scrutiny of political endorsements of digital assets remains to be seen.