An Argentine judge has been assigned to investigate fraud allegations against President Javier Milei after he briefly promoted a cryptocurrency that surged and then collapsed within hours. The case adds a legal and political headache for the libertarian leader, who says he acted in good faith and had no role in the project’s development.
According to the AP report, the matter was assigned to Judge María Servini, who heads Federal Court No. 1 in Buenos Aires. She will examine complaints filed by lawyers after Milei posted about the $LIBRA token on Friday evening, describing it as a project that could help finance small businesses and startups. The post appeared just as the token launched and helped draw attention to the asset.
The market reaction was dramatic. The coin briefly climbed to a market value above $4 billion, but critics quickly began warning that it might be a scam. As the price fell, Milei deleted his post, and the plunge left many early buyers nursing heavy losses. The report says the collapse unfolded within hours of the launch, turning what began as a promotional post into a controversy about political influence and investor risk.
Milei and his office denied involvement with the developers, saying he initially highlighted what he saw as an entrepreneurial initiative and removed the message to avoid further speculation. In a later interview, Milei said he was unaware of the details of the cryptocurrency and accused his opponents of trying to exploit the episode. He also insisted that people who entered the market did so voluntarily and understood the risks.
The office said the country’s Anti-Corruption Office would investigate as well. That step may give Milei a public defense, but it also means the episode will not remain just a political attack line. The legal scrutiny will focus on whether the president’s social-media endorsement crossed into improper promotion or misrepresentation, and whether the public had been misled about the project’s legitimacy.
The allegations also matter because Milei has built much of his political brand on attacking the old political class and promising cleaner, market-friendly government. A fraud probe tied to a speculative digital asset cuts directly against that message. Even without an immediate finding of wrongdoing, the investigation gives opposition figures a new line of attack and places additional pressure on a president already known for combative public messaging.
The judge’s assignment also ensures the controversy moves into formal legal channels rather than remaining only a social-media scandal. That is important in a country where investor confidence and confidence in public institutions can move together. Even if the probe does not result in charges, the inquiry itself will shape how Milei’s political opponents, supporters and financial critics talk about his judgment on the campaign trail and beyond.
The episode also fits a wider pattern in which Milei has sought to project outsider authenticity while moving quickly through his first year in office. That style can help him politically, but it also means a single social-media post can have immediate market and legal consequences. The court probe will test whether his administration can keep the controversy from becoming a lasting drag on credibility.
The political cost may outlast the immediate legal question. Investors who lost money, opposition figures who want to pin responsibility on the president and supporters who see the episode as overblown all have incentives to keep the story alive. That gives the investigation a life beyond the courtroom, even if it ends without charges.
