Argentine Court Dismisses Criminal Case Against Javier Milei Over Controversial LIBRA Memecoin Collapse
An Argentine judge has cleared President Javier Milei in the LIBRA case ruling after finding no evidence of criminal fraud.
Argentine Court Dismisses Criminal Case Against Javier Milei Over Controversial LIBRA Memecoin Collapse
An Argentine judge has cleared President Javier Milei in the LIBRA case ruling after finding no evidence of criminal fraud.
Argentine Judiciary Clears President Milei in Memecoin Investigation
An Argentine federal court has officially dismissed the criminal investigation into President Javier Milei regarding his endorsement of the Solana-based memecoin LIBRA. Federal Judge Marcelo Martínez de Giorgi rendered the LIBRA case ruling following a formal dismissal request from Prosecutor Eduardo Taiano, who determined that the actions under review did not amount to criminal activity. The court decision also cleared 10 other individuals associated with the project, including the president's sister and secretary general Karina Milei, lobbyist Mauricio Novelli, KIP Protocol CEO Julian Peh, and American businessman Hayden Davis.
According to court documents cited by local and international outlets, Judge Martínez de Giorgi noted that while President Milei's public endorsement undoubtedly amplified the token's market reach, a promotional social media post followed by a market crash is legally insufficient to prove criminal fraud without evidence of intentional deception. The judge further stated that investigators found no proof that Karina Milei requested or received funds in exchange for presidential access, nor was there evidence that any proceeds from the token reached public officials.
The Rise and Collapse of the LIBRA Token
The controversy dates back to Feb. 14, 2025, when President Milei published a post on X endorsing LIBRA, stating that the Solana-based crypto asset would assist in funding small businesses across Argentina. Following the presidential endorsement, the token experienced an exponential surge in market value before plummeting by more than 90 percent. The sudden drop erased over $250 million in investor capital, triggering severe backlash and immediate legal scrutiny.
Subsequent blockchain analysis revealed that eight digital wallets linked to the token's creator withdrew approximately $99 million in cryptocurrency around the time of the collapse. Hayden Davis, who identified himself as an adviser to the token launch, previously stated he held nearly $100 million following the crash while maintaining that he committed no wrongdoing. Although text messages surfaced during early investigations suggesting Davis claimed to have paid for inner-circle access, Davis later denied making any financial payments to the president or his sister, and Milei deleted his original endorsement post after claiming he acted in good faith.
Political Implications and Legal Next Steps Following the LIBRA Case Ruling
In a statement issued following the decision, the office of the president characterized the judicial inquiry as a politically motivated effort designed to damage Milei's standing ahead of Argentina's 2025 midterm elections. Prosecutor Taiano is not expected to launch an appeal against the dismissal, effectively closing the primary criminal probe against the administration.
Despite the official clearance, former plaintiffs and legal critics continue to challenge the judicial process, describing the outcome as an unfair resolution. Affected investors who were previously removed from the legal proceedings by the judge have brought their removal before the Federal Criminal Cassation Court. If those investors succeed in getting reinstated as civil plaintiffs, they could potentially seek a formal appeal against the dismissal of the case.
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