Argentina Judge Dismisses Criminal Case Against Milei Over LIBRA Memecoin Collapse
An Argentine federal judge has dismissed a criminal investigation into President Javier Milei over his promotion of the LIBRA memecoin, which surged shortly after its launch in February 2025 before collapsing and causing more than $250 million in investor losses.
The ruling also clears Milei's sister, Karina Milei, who serves as the presidency's secretary general, along with U.S. businessman Hayden Davis, who described himself as an adviser to the token's launch. In total, 11 people were cleared, including lobbyist Mauricio Novelli and KIP Protocol CEO Julian Peh, according to reports cited by Reuters and Argentine outlet Infobae. None had been formally questioned in the case.
Judge Says Evidence Was Insufficient to Establish Fraud
Judge Marcelo Martínez de Giorgi acknowledged that Milei's public endorsement may have amplified LIBRA's launch. However, he determined that the president's social media post and the token's subsequent collapse were not enough to establish fraud without evidence of a specific deception, according to court records cited in the reporting.
The judge also found no evidence that Karina Milei had sought or received payments in exchange for access to the president. Investigators likewise found no evidence that proceeds from LIBRA had reached public officials, Argentine fact-checking outlet Chequeado reported.
In a statement, the president's office said the judge had granted a prosecutor's request to dismiss the case because the conduct under investigation did not constitute a crime. It described the investigation, which began ahead of Argentina's 2025 midterm elections, as an effort to damage Milei's reputation during an election year.
LIBRA Promotion Followed by Sharp Market Collapse
Milei promoted LIBRA on X on Feb. 14, 2025, describing the Solana-based token as a way to support funding for small businesses in Argentina. The token's price rose rapidly before losing more than 90% of its value, wiping out more than $250 million in investor wealth.
The controversy also involved allegations about access to the president. In February 2025, CoinDesk reported obtaining text messages in which Davis allegedly boasted about buying access to Milei's inner circle, sending money to Karina Milei, and having influence over the president's decisions. Davis later denied making payments to either Milei or his sister.
Blockchain researchers identified eight wallets linked to the token's creator that had withdrawn approximately $99 million in cryptocurrency, according to the source report. Davis said he retained close to $100 million after the crash but denied wrongdoing.
Milei later deleted his post promoting LIBRA and denied having ties to the project. He said he had acted in good faith and withdrew his support after learning more about the token.
source: coindesk
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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