Key takeaways Argentine judge dismisses LIBRA criminal case against Milei Ruling also covers Hayden Davis and ten other defendants Investors may still pursue an appeal of dismissal An Argenti
An Argentine federal judge has dismissed the criminal investigation into President Javier Milei's involvement in the LIBRA memecoin scandal, ruling that the evidence did not establish fraud despite the cryptocurrency's dramatic collapse following his public promotion.
Judge Marcelo Martínez de Giorgi issued the decision on October 23 after prosecutor Eduardo Taiano requested that the case be dismissed, according to Reuters.
The ruling also covers Milei's sister Karina, American businessman Hayden Davis and eight other individuals investigated over the February 2025 token launch.
Why Argentina Dismissed the LIBRA Criminal InvestigationIn his 60-page ruling, Martínez de Giorgi concluded that Milei's promotion of LIBRA did not establish the elements required for criminal fraud.
The judge acknowledged that the president's position could have attracted additional attention to the cryptocurrency. However, he determined that the public endorsement and subsequent financial losses were insufficient to demonstrate a deliberate fraudulent scheme.
According to Infobae's reporting on the decision, the dismissal covered 11 individuals, including Mauricio Novelli and KIP Protocol executive Julian Peh.
Investigators also examined alleged financial arrangements involving people connected to the project, but the court found insufficient evidence to establish criminal wrongdoing.
The decision represents a major development in a case that previously led to asset freezes and allegations involving individuals associated with LIBRA's launch.
However, some affected investors are challenging their earlier removal as parties to the proceedings. If reinstated, they could potentially appeal the dismissal.
How Milei's LIBRA Endorsement Triggered a Crypto ScandalThe controversy began on February 14, 2025, when Milei shared a post promoting LIBRA, a Solana-based cryptocurrency presented as a way to support Argentine businesses.
The token rapidly climbed to a market capitalization exceeding $4.5 billion before losing approximately 95% of its value within hours.
Milei subsequently deleted the post and denied involvement in the project's development, saying he had acted in good faith.
The episode triggered fraud allegations, investor complaints and political scrutiny over the relationship between the president and the project's promoters.
Blockchain investigators also identified substantial withdrawals from wallets associated with the token's creators.
According to earlier on-chain research, wallets linked to the LIBRA launch withdrew cryptocurrency worth tens of millions of dollars as the token collapsed.
Separate blockchain forensic analysis documented large losses among retail traders, with several individual wallets losing more than $1 million.
Could LIBRA Investors Still Pursue Legal Action?Although the Argentine criminal proceedings have been dismissed, the decision does not automatically settle every dispute surrounding LIBRA.
Investors previously removed from the case are seeking reinstatement through Argentina's courts. A successful challenge could create an opportunity to appeal the latest ruling.
The scandal has also generated litigation outside Argentina, including a U.S. class-action lawsuit targeting parties connected to the token.
Earlier reporting detailed Hayden Davis's attempts to challenge the jurisdiction of a New York court hearing claims connected to LIBRA.
