Argentine Court Clears President Milei in Libra Case

Argentine Court Acquits President Javier Milei

In a major legal update from South America, an Argentine federal court has officially cleared President Javier Milei of all criminal charges related to the collapse of the Viva La Libertad Project, widely known as the Libra meme coin.

The ruling came down from the Buenos Aires National Criminal and Correctional Federal Court No. 8. Federal Judge Marcelo Martinez de Giorgi dismissed the case following a formal petition from public prosecutor Eduardo Taiano.

After a thorough review, the court concluded that there was no conclusive evidence linking President Milei, his sister Karina Milei, or any other defendants to criminal fraud, scamming, or misuse of public power.

The Rise and Fall of the Libra Token

To understand how the President of Argentina ended up in court over a digital token, we have to look back at how the project began.

In February 2025, the Viva La Libertad Project launched the Libra meme coin. The initiative was presented as a community-driven project designed to raise funds and support small business owners and entrepreneurs across Argentina.

Shortly after its official release, President Javier Milei shared information about the token on his personal social media accounts. Given his global public profile, the announcement quickly drew massive attention from retail investors worldwide.

However, the excitement was short-lived. Within just hours of the public social media posts, the market price of the Libra token plummeted drastically. The sudden drop left more than 40,000 individual investors facing financial losses, with total capital affected estimated at nearly $110 million.

Why the Court Found No Evidence of Fraud

When token values drop rapidly, buyers often wonder if a rug pull or intentional scam took place. However, the Argentine court drew a clear legal distinction between high market volatility and intentional criminal deception.

Judge Martinez de Giorgi carefully examined the on-chain records and the underlying mechanics of the launch. Here are the core factors that led to the court's decision to dismiss all charges:

• Operational Reality: On-chain data demonstrated that the Libra token was actually created, launched, and operated as intended on the blockchain.
• No Guaranteed Profitability: The project creators and promoters made no formal promises of guaranteed future returns or fixed profits to buyers.
• Market Risk Dynamics: Losing capital in the fast-moving meme coin market does not automatically prove that a crime occurred.

The court specifically highlighted that prices in the crypto sector—and particularly within the meme coin sub-sector—can experience extreme price swings. Financial losses resulting from high market volatility are not sufficient proof of fraud under Argentine criminal law.

Past performance of digital assets is not an indicator of future returns. Readers can review market data directly on platforms like Bitkub Market.

Addressing Misconduct and Influence Peddling Allegations

Beyond general fraud claims, critics raised questions about whether President Milei abused his public office when sharing the token online.

The court investigated these accusations, which included charges of abuse of authority, incompatible negotiations, and influence peddling. Ultimately, all of these claims were formally dismissed.

The judges ruled that President Milei posted about the token in a purely personal capacity. He did not issue official government decrees, use state funds, or execute administrative acts to endorse the project.

The case also involved Karina Milei, the president's sister and General Secretary of the Presidency of the Argentine Nation. Accusers claimed she accepted money to arrange private meetings with the President.

However, the court explicitly stated that prosecutor Taiano found no evidence supporting these allegations against Karina Milei, leading to her complete exoneration alongside the President.

Parallel Legal Dismissal in the United States

The favorable legal outcomes for the project participants were not limited to Argentine jurisdiction. The decision in Buenos Aires follows a similar legal ruling in the United States.

Earlier in the month, a U.S. federal court in New York dismissed a class-action lawsuit filed against Kelsier Ventures and other defendants connected to the Libra token.

The American lawsuit had alleged violations under the Racketeer Influenced and Corrupt Organizations (RICO) Act. With both the U.S. and Argentine courts dismissing the cases, formal legal proceedings alleging organized fraud in both major jurisdictions have come to an end.

What Happens to the $110 Million in Sales Proceeds?

While criminal charges have been cleared, many community members have wondered what happened to the capital raised during the initial token launch.

In May, an independent trust was established to oversee the distribution of over $110 million raised from the Libra token sales. The trust's stated goal is to allocate these funds directly to Argentine entrepreneurs through business development grants.

The grant system aims to distribute these funds before November. However, public updates regarding the exact distribution timeline or specific grant recipients have not yet been released.

Congressional Reports and Continuing Political Debates

Despite the court's final verdict, political discussions surrounding the project continue in Argentina's legislative branch.

A special congressional commission that investigated the Libra launch published a report suggesting President Milei should face further review regarding administrative misconduct.

While the congressional report reflects ongoing political debate, the federal court's acquittal remains the binding judicial verdict, officially concluding the criminal legal process.

Key Takeaways for Digital Asset Enthusiasts

The case of the Libra token offers valuable context for anyone exploring the digital asset market. Here are a few practical lessons to keep in mind:

1. Understand Market Risk: Tokens driven by social media hype can experience rapid price movements in short timeframes.
2. Personal Posts vs Official Acts: Courts evaluate whether public statements constitute binding financial advice or official government actions.
3. Evidence Standards: Legal authorities look closely at contract code, actual blockchain operations, and explicit earnings claims when evaluating fraud allegations.

Loss of funds on the volatile meme coin market was found insufficient to prove a fraud actually happened, according to the ruling by the Buenos Aires Federal Court.

Understanding the difference between market volatility and legal wrongdoing helps investors navigate the evolving landscape of digital assets responsibly.