CoinDesk
An Argentine federal judge dismissed the criminal case against President Javier Milei over his February 2025 promotion of LIBRA, finding no specific deception sufficient to establish fraud. The dismissal covers 11 people in total, including his sister Karina and LIBRA adviser Hayden Davis. LIBRA lost more than 95% of its value after reaching about $5, while eight wallets linked to its creator withdrew around $99 million in cryptocurrency.
Why it matters
The court separated the legality of Milei's promotion from the token's market collapse. Judge Marcelo Martínez de Giorgi acknowledged that the endorsement could have given LIBRA's launch greater impact, but said the social media post and subsequent collapse were not enough to prove fraud without evidence of a specific deception. He also found no evidence that Karina Milei sought or received money for access to the president or that LIBRA proceeds reached public officials.
Text messages obtained by CoinDesk in February 2025 showed Davis boasting about buying access to Milei's inner circle, claiming he had sent money to Karina and saying he could influence presidential decisions. Davis denied making payments to either Milei or his sister. The dismissal did not amount to a finding that Davis's payment and influence claims were true.
The president's office said the judge granted the prosecutor's request because the acts were not a crime. It characterized the probe, opened before Argentina's 2025 midterm elections, as an attempt to harm Milei's reputation in an election year.
Market impact
The immediate effect is reduced legal risk for Milei, Karina and Davis. Milei had promoted the Solana-based token on X on Feb. 14, 2025, saying it would help fund small businesses in Argentina. LIBRA rose sharply, then collapsed, erasing more than $250 million in investor wealth. Milei later deleted the post, denied ties to the project and said he had acted in good faith after learning more about it.
Prosecutor Eduardo Taiano requested the dismissal and is not expected to appeal. Investors who joined the case as plaintiffs are still challenging their removal from it.
Frequently asked questions
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Why did the court dismiss the fraud case against Milei?
Judge Marcelo Martínez de Giorgi said Milei's post and LIBRA's collapse did not prove fraud without evidence of a specific deception. He acknowledged that the endorsement could have increased the launch's impact.
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How many people did the LIBRA dismissal cover?
The dismissal covered 11 people in total, including President Javier Milei, his sister Karina and LIBRA adviser Hayden Davis.
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How much did LIBRA lose, and what left creator-linked wallets?
LIBRA lost more than 95% after reaching about $5. Eight wallets linked to its creator withdrew around $99 million in cryptocurrency.
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What did the court find about alleged payments to Milei's inner circle?
The court found no evidence that Karina Milei sought or received money for access to the president, or that proceeds from LIBRA reached public officials. Davis denied the payment claims described in text messages.
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Can investors still appeal the LIBRA case dismissal?
Prosecutor Eduardo Taiano requested the dismissal and is not expected to appeal. Investors are challenging their removal as plaintiffs and could appeal if reinstated by the Federal Criminal Cassation Court.
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