Argentina drops Milei probe over $99M LIBRA meme coin scandal

Argentina has dropped its criminal investigation into President Javier Milei and his sister, Karina Milei, over their alleged links to a crypto scandal. Federal judge Marcelo Martínez de Giorgi dismissed the case involving Milei’s promotion of the LIBRA meme coin, which later crashed.

As reported by Cryptopolitan, 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. He 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 to not to continue giving it publicity,” he said.

Judge Martínez de Giorgi dropped the case against Javier Milei

Judge Martínez de Giorgi dismissed the case against Javier Milei, finding no proof of deceit or fraud, as well as no indication that the alleged incidents were part of any particular legal category. Nevertheless, the federal judge emphasized that the president’s institutional position could have increased the significance of his social media post.

The allegations of fraud arose soon after Milei’s announcement of $LIBRA on his social media account, where he suggested it would help finance startups and small businesses. While the currency had risen in value, it fell sharply once he removed the post from his social media page. After the currency’s crash, opposition members of Congress began preparing an impeachment motion, and online critics accused him of a “rug pull” on the currency.

But Milei argued that the mere fact of sharing the post does not mean that he was advertising the cryptocurrency. In another commentary, he pointed out that he did not know much about the project when he made the post and that he ceased speaking about the currency after gaining a better understanding of it.

Chainalysis shows cryptocurrency scams received $14 billion on-chain

For some time now, there has been a surge in crypto fraud and scams. Chainalysis believes that cryptocurrencies associated with scamming have collected at least $14 billion on-chain in 2025. This represents significant growth from the $9.9 billion first reported in 2024, which was later adjusted to $12 billion, consistent with the company’s $12.4 billion estimate. 

In general, the total amount of scam-related funds has grown significantly due to impersonations that increased by 1,400%. High-yield programs and pig butchering also continue to lead in overall volume, but scam tactics are increasingly converging; fraudsters now combine AI tools, sophisticated SMS phishing, and deep money-laundering networks to maximize their reach. 

Findings from a July 2025 J.P. Morgan study show cybercriminals are increasingly turning to AI-generated content and deepfakes to trick victims with 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 those connections, per the bank’s report.

Nevertheless, in July, more than $25 million in cryptocurrency tied to transnational fraud rings has been seized by the Cyber Fraud Task Force, according to a joint announcement today from the U.S. Secret Service and the U.S. Attorney’s Office for the District of Columbia. These assets add to the $800 million in assets recovered through the Scam Center Strike Force, an initiative launched in 2025 by U.S. Attorney Jeanine Pirro to protect U.S. and Canadian residents.

“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 Washington Field Office.

She also encouraged people who suspect they have been targeted by these scams or similar crypto-related offenses to reach out for assistance.

The dismissal closes a significant chapter in the legal scrutiny surrounding LIBRA, although it does not erase the financial losses reported by traders.

The case also highlights the risks associated with meme coins, whose prices can change sharply following endorsements from influential figures. For investors, the episode underscores the importance of conducting independent research on cryptocurrency projects rather than relying solely on public endorsements.