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Argentine federal judge Marcelo Martínez de Giorgi has dismissed the criminal investigation into President Javier Milei, his sister Karina Milei, and U.S. businessman Hayden Davis over the LIBRA meme coin scandal, citing insufficient evidence of fraud. The ruling closes the most serious legal exposure the Milei administration faced from the episode.
The judge found that while Milei's endorsement on X in February 2025 amplified LIBRA's launch, the act of promotion did not in itself constitute a fraudulent scheme. Milei deleted his post shortly after the token's price collapsed. Blockchain researchers had previously documented that eight wallets linked to the token's creator withdrew approximately $99 million in cryptocurrency from LIBRA's trading market before the collapse.
Why it matters
The dismissal sets a significant precedent for how Latin American courts treat political figures who promote crypto assets. The judge's reasoning effectively separates a public endorsement from legal liability for subsequent price action, a distinction that will be closely read by regulators and legal scholars across the region and beyond.
Market impact
LIBRA itself remains a cautionary case study in meme coin risk: a high-profile political endorsement, a rapid price collapse, and documented large-scale liquidity withdrawals. The legal closure does not rehabilitate the token, but it does remove a layer of political uncertainty around the Milei government that had been hanging over Argentina's broader crypto policy outlook.
Frequently asked questions
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Why did the Argentine judge drop the LIBRA criminal probe?
Judge Marcelo Martínez de Giorgi found insufficient evidence of fraud, ruling that President Milei's X endorsement amplified LIBRA's launch but did not in itself constitute a fraudulent scheme.
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How much money was withdrawn from LIBRA's trading market before its collapse?
Blockchain researchers documented that eight wallets linked to the token's creator withdrew approximately $99 million in cryptocurrency from LIBRA's trading market before the price collapsed.
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Who were the subjects of the LIBRA criminal investigation in Argentina?
The probe targeted President Javier Milei, his sister Karina Milei, and U.S. businessman Hayden Davis over their alleged roles in the LIBRA meme coin scandal.
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What precedent does this ruling set for politicians who promote crypto assets?
The ruling effectively separates a public endorsement from legal liability for subsequent price action, a distinction regulators and legal scholars across Latin America and beyond will closely examine.
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What happened to the LIBRA token after Milei's endorsement?
LIBRA's price collapsed shortly after Milei promoted it on X in February 2025. He deleted his post following the crash, and the token remains a cautionary case study in meme coin risk despite the legal closure.
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