An Argentine federal judge dismissed the criminal investigation into President Javier Milei, his sister Karina Milei, crypto entrepreneur Hayden Davis and other defendants over the LIBRA memecoin collapse. Reuters reported that Judge Marcelo Martinez de Giorgi found the alleged events did not constitute a criminal offense and that the evidence did not establish fraud. reuters.com
The case followed Milei’s February 2025 promotion of LIBRA on X. The token rallied after the post and then collapsed after he deleted it. Milei denied a connection to the project and said he had shared information about what he understood to be a private initiative.
The ruling separates political amplification from criminal intent. The judge acknowledged that Milei’s office may have expanded the token’s reach, but concluded that the president’s public position was not by itself proof of fraud. The dismissal also covered Karina Milei, Davis and ten other people named in the investigation.
Researchers had linked eight wallets associated with the token’s creator to withdrawals worth approximately $99 million. The existence of those transactions did not persuade the court that the named defendants had committed a prosecutable offense. Blockchain records can establish transfers and timing, but responsibility and intent require evidence beyond wallet movement.
The decision closes this Argentine criminal track unless successfully challenged. It does not convert LIBRA into a legitimate investment, explain every wallet relationship, or erase possible civil, political and reputational consequences. Those are separate questions with different evidentiary standards.
TOKEN RECON ASSESSMENT
The ruling narrows legal exposure for Milei and the other defendants, but it should not be read as an onchain exoneration of the token’s structure. The court found the criminal evidence insufficient. It did not resolve beneficial ownership behind all relevant wallets or establish that market participants received adequate disclosure. Any appeal, civil action or authenticated evidence connecting defendants to token economics would be a material update.
Sources
Reuters: Argentina drops probe into President Milei and sister over meme coin scandal
The Defiant: Argentine judge dismisses LIBRA criminal case
El País: Argentine court dismisses Milei and his sister in LIBRA case
