Argentine Court Clears President Milei in LIBRA Case

Argentine Court Clears President Milei in LIBRA Token Case

An Argentine federal judge has officially cleared President Javier Milei of criminal wrongdoing regarding the controversial LIBRA meme coin. The decision brings a major legal chapter to a close for now. However, political opponents continue to question the verdict.

What Was the LIBRA Meme Coin Scandal?

To understand the court ruling, we need to look back at how the situation started. On February 14, 2025, President Javier Milei promoted the LIBRA token on his personal X account.

Following his social media post, market activity surged rapidly. The market value of LIBRA briefly topped $4.5 billion before dropping by about 95% within just a few hours.

On-chain analysts later discovered that eight crypto wallets tied to the team cashed out approximately $107 million during the price surge.

Milei eventually deleted his post, stating that he had acted in good faith without any intent to deceive the public.

Past performance of digital assets is not a guarantee of future results. Digital asset markets can experience high price volatility and rapid changes.

Inside the Judge's Verdict

Federal Judge Marcelo Martínez de Giorgi issued a detailed 60-page ruling dismissing the case. Prosecutor Eduardo Taiano had formally requested this dismissal.

The ruling cleared 11 individuals in total. Because the case was dismissed at this stage, none of the 11 individuals ever faced formal questioning as criminal suspects.

Key Legal Reasons for Dismissal

• Promotion and crash do not equal fraud: The judge noted that a public post, a rapid rally, and a subsequent price crash do not inherently prove criminal intent or fraud.
• Financial loss isn't automatically a crime: The court ruled that economic loss alone does not automatically make an event a criminal offense.
• Personal account usage: Milei made the promotional post from his personal X account without using official state resources.
• Unlinked evidence: Investigators could not connect a note on co-defendant Mauricio Novelli's phone describing $5 million in payments to any other individuals.
• Limited official records: The only direct record connecting Karina Milei to Hayden Davis was an entry authorization for the Casa Rosada presidential palace from July 2024.

Who Was Cleared in the Case?

The dismissal applied to all 11 individuals named in the initial investigation.

• Javier Milei: President of Argentina.
• Karina Milei: Sister to the President and key political advisor.
• Hayden Davis: Crypto entrepreneur linked to the project.
• Mauricio Novelli: Key participant involved in project operations.
• Julian Peh: Co-defendant named in the initial court filings.

Reactions: Political Relief vs. Cover-Up Allegations

The court's decision drew immediate reactions from both sides of the political aisle.

President Milei welcomed the ruling, stating that justice had put things in their proper place. He framed the lawsuit as a planned political and media campaign against his administration.

In contrast, opposition deputy Maximiliano Ferraro strongly criticized the decision, calling it a planned judicial cover-up.

"$LIBRA: We are facing a clear, planned judicial operation of cover-up and impunity for Milei and all the organizers of the scam." — Maximiliano Ferraro on X (October 23, 2026).

Ferraro pointed out that a congressional commission had previously reviewed the case in November 2025. That commission concluded that Milei provided essential collaboration to the token project.

Judicial Appointment Raises Questions

Critics also pointed out an administrative detail concerning the judiciary.

In July, President Milei signed a decree appointing the presiding judge's wife to a federal court position. Opponents argue this creates potential ethical concerns regarding judicial independence.

What Happens Next? The Path to Appeal

For the moment, the federal court has officially archived the case. However, legal challenges may continue.

Several excluded plaintiffs have submitted requests to the Federal Cassation Court to reinstate their standing. If the Cassation Court agrees to hear their petition, it could reopen the door for a formal appeal process.

Key Takeaways for Crypto Participants

The LIBRA story serves as a clear reminder of the risks involved in social media-driven token promotions.

Even when prominent public figures endorse digital assets, market dynamics can change quickly. Investors should always conduct thorough research and evaluate underlying risks carefully before engaging with new tokens.