An Argentine federal judge has dismissed the criminal investigation into President Javier Milei, his sister Karina Milei and nine other individuals linked to the LIBRA memecoin, ruling that the evidence failed to establish criminal fraud or deception under Argentine law.

Judge Marcelo Martínez de Giorgi issued the decision on October 23 after federal prosecutor Eduardo Taiano requested closure of the case. The probe, opened in February 2025, examined possible wrongdoing surrounding the Solana-based token’s launch and the president’s public promotion of it.

Background of the LIBRA Controversy

On February 14, 2025, Milei posted on X about LIBRA, describing it as a private initiative intended to support Argentine businesses and including the project’s website and contract address. The token’s market capitalization briefly climbed to approximately $4.6 billion before plunging more than 90 percent within hours. Estimates place investor losses at around $251 million across roughly 114,000 wallets, with about 86 percent of traders recording losses. Some accounts reported a market-value wipeout exceeding $4 billion in the immediate aftermath.

Milei later deleted the post and stated he had acted in good faith without full understanding of the project. Blockchain analyses at the time pointed to substantial withdrawals from wallets associated with the token’s creators as the price collapsed. The episode triggered investor complaints, political scrutiny and the criminal inquiry into the issuance and the roles of those involved.

Judge’s Findings on Fraud Allegations

In a detailed ruling, Martínez de Giorgi concluded that the available evidence did not demonstrate the legally defined elements of fraudulent deception. The judge noted that Milei’s position as president could have increased the token’s visibility and inspired confidence among some buyers. However, he determined that public endorsement and subsequent financial losses alone were insufficient to prove a deliberate scheme to defraud.

Key points in the decision included the absence of any promised fixed returns, the fact that token transactions remained traceable on the blockchain, and insufficient proof that Karina Milei received funds connected to the project. The judge also rejected claims of abuse of authority or conduct incompatible with public office, observing that the promotional post originated from Milei’s personal account and that investigators had not established official government involvement.

The dismissal extended to U.S. businessman Hayden Davis, who had described himself as an adviser to the token’s launch, as well as Mauricio Novelli, KIP Protocol executive Julian Peh and other associates. Defendants were not called for formal questioning before the case was closed.

Reactions from the President and Officials

Milei responded on X by framing the dismissal as vindication after what he described as a year, eight months and nine days of alleged lies, slander and insults. He asked who would compensate him for reputational damage and accused political opponents and certain media outlets of using the investigation to undermine his presidency for political ends.

He specifically named five journalists—Hugo Alconada Mon, Carlos Pagni, Paulino Rodríguez, Natalia Volosín and Luis Novaresio—accusing them of spreading falsehoods and conducting operations against his government. The Office of the President issued a statement celebrating the ruling and citing Article 336, subsection 3, of Argentina’s criminal procedure code, which allows dismissal when the events under investigation do not constitute a crime. Karina Milei separately welcomed the outcome, saying the accusations had harmed the siblings’ reputations and that truth had prevailed.

Criticism and Remaining Legal Avenues

Not all observers accepted the decision. Pedro Biscay, executive director of the Center for Research and Prevention of Economic Crime, which participated as an amicus curiae, called the dismissal premature. He argued that the investigation should have proceeded to public trial to fully examine the president’s role in disseminating the token and warned against closing a matter of this scale without complete review.

Reporting on the ruling noted that some evidence-gathering steps remained unfinished. Blockchain tracing work could not be completed in full because investigators lacked certain licensed technical tools, and responses from companies involved were only partial. Affected investors who had earlier been removed as private complainants are seeking reinstatement, which could open a path to appeal if successful.

Parallel U.S. Litigation Also Closed

A separate class-action lawsuit in the United States, filed by investors including Omar Hurlock of Brooklyn, New York, and Anuj Mehta of Arlington, Virginia, was dismissed earlier. On September 29, U.S. District Judge Jennifer L. Rochon granted motions to dismiss claims against Kelsier Ventures defendants, decentralized finance platform Meteora and developer Benjamin Chow, denying leave to amend the complaint a second time. The order closed the case without awarding compensation to LIBRA buyers. An earlier freeze on approximately $57.6 million in USDC linked to certain wallets had already been lifted.

Neither the Argentine criminal dismissal nor the U.S. civil ruling provided financial recovery for those who lost money on the token. Investors continue to explore available options within the remaining procedural avenues in Argentina.