Judge dismisses fraud case against President Javier Milei over Libra
Federal Judge Dismisses Fraud Case Against President Javier Milei Over Libra Token Crash
Federal judge Marcelo Martinez de Giorgi dismissed a criminal investigation into Argentine President Javier Milei and his sister Karina Milei on Friday, finding no evidence of fraud or criminally relevant deception in their links to the collapsed meme coin $Libra. According to court records cited by Reuters, prosecutor Eduardo Taiano requested the dismissal after determining that the reported events did not fall under a legal category. The case centered on a February 2025 social media post by President Milei recommending the token, which triggered a brief market rally before crashing and leaving over 40,000 investors with heavy financial losses.
The investigation initially began after the president shared a link to the cryptocurrency on X, formerly Twitter, stating at the time that the digital asset would help fund small businesses and start-ups. Within hours of the post, the price spiked before plunging dramatically as creators withdrew funds. Blockchain research later indicated that approximately $99 million was pulled from the marketplace by eight digital wallets linked to the coin’s creator. Reuters reported that Argentina’s fintech chamber categorized the event as a potential “rug pull” scheme, wherein developers pump up token values before dumping their stakes.
President Milei consistently denied any wrongdoing, stating in local media interviews that he had acted in good faith and was unaware of the project’s details when he shared the initial post. “I didn’t promote it, I merely shared it,” Milei said in an interview with Todo Noticias, adding that he deleted the post once he learned more about the venture. In his ruling, Judge Martinez de Giorgi noted that while the president’s institutional standing gave the project’s launch greater impact, those factors did not amount to a fraudulent scheme. The court similarly dismissed charges against US businessman Hayden Davis, who identified himself as a launch adviser for the token and acknowledged holding close to $100 million following the crash.
🇦🇷 UPDATE: An Argentine judge dismissed the investigation into President Javier Milei and his sister’s links to the $LIBRA cryptocurrency scandal at prosecutors’ request. pic.twitter.com/Pa52lG5CV8
Court Rulings Clear All Defendants as Separate Trust Plans Restitution
The Buenos Aires National Criminal and Correctional Federal Court No. 8 ruled that Milei’s token promotion was personal and did not constitute an abuse of state power, incompatible negotiations, or influence peddling. The court specified that market volatility and financial losses on meme coins were insufficient to prove fraud occurred, noting that no promises of future profitability had been made by the defendants. The dismissal also cleared Karina Milei, the General Secretary of the Presidency of the Argentine Nation, who had faced accusations of accepting payments to secure access and meetings with the president.
Legal challenges surrounding the digital asset have wound down in international jurisdictions as well. A separate class-action lawsuit filed in New York involving RICO charges against Kelsier Ventures and other defendants was dismissed earlier in the month. Meanwhile, an independent trust launched in May set out to distribute over $110 million in proceeds from Libra token sales to Argentine entrepreneurs through a structured grants system. While a congressional commission’s final investigative report suggested further scrutiny of the president, the judicial system has formally closed the criminal inquiry.
