Argentina Drops Case Against President Milei Over LIBRA

Argentina Clears President Milei in LIBRA Memecoin Probe

Argentine President Javier Milei is officially off the hook regarding a controversial cryptocurrency project that made headlines earlier this year. An Argentine federal judge has formally dismissed a criminal investigation into the president over his online promotion of a failed crypto token called LIBRA.

The court ruling does not just apply to the president. It also clears 10 other individuals linked to the project. Among them is Karina Milei, who is the president's sister and serves as secretary general of the presidency.

The dismissal also extends to Hayden Davis, a U.S. businessman who served as an adviser during the token's launch. Other individuals cleared by the court include lobbyist Mauricio Novelli and KIP Protocol CEO Julian Peh. Notably, none of the 11 individuals had been formally questioned during the investigation.

Why Did the Judge Dismiss the Case?

Federal Judge Marcelo Martínez de Giorgi examined whether President Milei's social media posts constituted financial fraud. The judge acknowledged that Milei's endorsement gave the token launch massive public attention and market impact.

However, the ruling emphasized that promoting a token that later crashes is not enough to establish criminal fraud. Under the law, prosecutors must present clear evidence of intentional deception, which was missing in this case.

According to the Argentine fact-checking outlet Chequeado, the judge also found no evidence that Karina Milei sought or received payments in exchange for political access. Furthermore, investigators found no proof that funds from the LIBRA project reached any public officials.

The Story Behind the LIBRA Crash

To understand why the legal case began, we have to look back at the origins of the token. On February 14, 2025, President Milei posted on X (formerly Twitter) about LIBRA, a memecoin built on the SolanaSOL-4.96% blockchain.

In his original post, Milei claimed the project would help fund small businesses in Argentina. Driven by presidential excitement, public interest exploded, causing the token's market price to rise rapidly toward peak levels around $5.

However, the rally was short-lived. The token quickly crashed, losing more than 95% of its value and wiping out roughly $250 million in investor capital. Note: Past performance of digital assets is not indicative of future results.

Blockchain analysts later reported that eight digital wallets linked to the token's creator withdrew approximately $99 million in cryptocurrency shortly around the crash. Davis admitted to holding nearly $100 million after the collapse, though he strongly denied any wrongdoing.

Text Messages and Political Fallouts

The controversy escalated after reports revealed text messages where Davis allegedly bragged about paying for access to Milei's inner circle. The messages also suggested he sent money to Karina Milei to influence presidential decisions.

Davis later denied making any payments to either Milei or his sister. Meanwhile, President Milei deleted his promotional post and publicly cut ties with LIBRA. Milei stated that he had acted in good faith and withdrew his support after learning more about the project's true nature.

The president's official office welcomed the judge's decision. Officials stated that prosecutor Eduardo Taiano requested the dismissal because no crime was committed, framing the original probe as a political attack ahead of Argentina's 2025 midterm elections.

Could the Legal Case Reopen in the Future?

Although prosecutor Taiano requested the dismissal and will not appeal, the legal story might not be completely finished yet.

Back in July, the judge removed a group of affected investors who had joined the lawsuit as official plaintiffs. An appeals court upheld that decision in September.

However, those investors have challenged their removal before the Federal Criminal Cassation Court. If that court reinstates them as official plaintiffs, they would gain the legal right to appeal the dismissal of the criminal probe.