An Argentine federal judge has dropped a criminal investigation into President Javier Milei and his sister Karina Milei over the collapse of the $LIBRA memecoin. Reuters reported that the ruling came on Friday, October 23, and that the judge found no evidence of fraud, according to court records.

What the judge decided

Federal judge Marcelo Martinez de Giorgi had been investigating Milei's role in promoting the token. According to Reuters, Milei recommended the little-known coin in a post on X in February 2025, which kicked off a brief rally.

The ruling also covers U.S. businessman Hayden Davis, who described himself as an adviser to the token's launch, and in total 11 people were cleared, CoinDesk reported, citing Infobae. CoinDesk added that none of them had been formally questioned in the case.

The judge drew a line between promotion and proof of fraud. Per CoinDesk's account of the court records, he acknowledged that Milei's endorsement could have given the launch "greater impact," but said the post and the token's subsequent collapse were insufficient to establish fraud without evidence of a specific deception. CoinDesk also cited Argentine fact-checking outlet Chequeado as reporting that the judge found no evidence that Karina Milei sought or received money in exchange for access to the president, or that LIBRA proceeds reached public officials.

The Buenos Aires Times reported that the judge said the reported events do not constitute a criminal offence, and that the case was dismissed after a prosecutor's request.

Background and open questions

CoinDesk reported that Milei promoted the Solana-based token on X on February 14, 2025, saying it would help fund small businesses in Argentina. It said LIBRA lost more than 95% of its value after reaching about $5, while wallets linked to its creator withdrew around $99 million in cryptocurrency. Estimates of investor losses vary by outlet, with CoinDesk citing over $250 million and the Buenos Aires Times citing an estimated $100 million.

In a statement cited by CoinDesk, the president's office said the acts under review did not constitute a crime and characterised the probe as an attempt to damage Milei's reputation in an election year. Milei has said he was not aware of the project's details and stopped promoting it once he found out, Reuters reported.

The dismissal closes the criminal inquiry at this stage, but it does not return money to investors. Crypto Briefing noted the closure is pending any appeals, so further legal challenges remain possible.

Sources:

  • Reuters via U.S. News: Argentine judge clears President Milei of wrongdoing in meme coin scandal

  • CoinDesk: Argentina drops criminal probe into President Milei over crashed memecoin LIBRA

  • Buenos Aires Times: Court clears Milei siblings in $LIBRA cryptocurrency case