Argentine Judge Drops LIBRA Probe Into Milei

Major Update in Argentina's LIBRA Crypto Case

Argentina's crypto landscape saw a massive development this week. A federal judge officially dismissed the criminal investigation into President Javier Milei. The legal probe also cleared his sister, Karina Milei, and American businessman Hayden Davis.

The high-profile court case revolved around the sudden price collapse of the LIBRA cryptocurrency token. Even though everyday investors suffered estimated financial losses exceeding $200 million, the court ruled that no criminal laws were broken.

Inside the Ruling: Why the Judge Closed the Probe

Federal Judge Marcelo Martinez de Giorgi delivered the decision in a detailed 60-page ruling on October 23. This formal decision came after prosecutor Eduardo Taiano reviewed the evidence and recommended closing the case.

Investigators spent months looking into whether President Milei committed criminal fraud, abused his public authority, or misused government resources. They specifically analyzed whether he improperly leveraged his presidency to promote a private token project.

Ultimately, Judge Martinez de Giorgi concluded that the events did not meet the legal threshold for a criminal offense. He emphasized that extreme price volatility and massive investor losses alone do not establish a deliberate fraudulent scheme.

How the LIBRA Scandal Unfolded

To understand the controversy, we have to look back at February 2025. President Javier Milei shared a post on X with his millions of social media followers.

The world wants to invest in Argentina. LIBRA.

Milei publicly stated that the new cryptocurrency project would help fund small local businesses. His social media post immediately drew global attention to the token, sparking an intense buying rush.

However, the enthusiasm was short-lived. Just a few hours later, Milei deleted his post and publicly distanced himself from the project entirely.

Following the post's deletion, the price of LIBRA crashed instantly. Market estimates suggest that retail investors lost anywhere between $100 million and $251 million in a matter of hours.

Critics quickly labeled the event a rug pull—a situation where project creators abandon a token and take off with investor funds. However, the judge's ruling noted that while Milei's endorsement boosted the token's visibility, it did not prove criminal intent.

Karina Milei and Hayden Davis Fully Cleared

The court case did not focus solely on the president. Authorities also thoroughly investigated Karina Milei, who serves as the presidential chief of staff.

Allegations had suggested that Karina received secret cash payments to set up meetings between her brother and LIBRA's creators. However, court documents confirm that investigators found zero evidence of financial kickbacks or improper influence.

American businessman Hayden Davis, who worked as an advisor during the token's launch, was also cleared. Davis maintained his innocence throughout the process, and the judge found no proof of illegal collusion between Davis and Argentine officials.

Political Reaction and Market Reminders

The court ruling triggered immediate responses from across Argentina's political spectrum.

• The President's Office: Celebrated the ruling on social media, claiming the 60-page decision served as absolute proof of Milei's innocence.
• Opposition Lawmakers: Heavily criticized the verdict, expressing concern for the hundreds of investors who suffered devastating financial losses.

This case highlights the unpredictable risks involved in social media crypto endorsements. Investors should always evaluate token fundamentals carefully rather than relying on high-profile public statements.

Past performance of digital assets or historical price movements do not guarantee future returns. Digital assets remain highly volatile, and investors should manage risks carefully.