An Argentine federal judge has cleared President Javier Milei and 10 other individuals of criminal deception charges in connection with the promotion and collapse of the LIBRA meme coin.
Federal Court Dismisses LIBRA Fraud Charges
Federal judge Marcelo Martínez de Giorgi dismissed all charges against 11 individuals, including President Javier Milei, his sister Karina Milei, Hayden Davis, Mauricio Novelli, and Julian Peh. The decision followed a formal request from prosecutor Eduardo Taiano, ensuring that none of the 11 individuals ever faced formal questioning as official suspects.
In his 60-page ruling, Judge Martínez de Giorgi wrote that social media promotion, a price surge, and a subsequent crash do not inherently prove criminal fraud, stating that financial loss alone is not automatically a crime. The court highlighted that Milei published the promotional content from his personal account without using state resources. Furthermore, investigators could not link an electronic note on Novelli's phone referencing $5 million in payments to any co-defendants, while the only official record connecting Karina Milei to Davis was a July 2024 entry authorization for the Casa Rosada presidential palace.
Token Crash and Political Backlash
Milei originally promoted LIBRA on X on February 14, 2025. The token's total market value briefly surpassed $4.5 billion before plummeting approximately 95% within hours. On-chain tracking subsequently revealed that eight crypto wallets linked to the project team cashed out $107 million during the spike. Milei later deleted the post and claimed he acted in good faith, occurring alongside wider legal efforts against cryptocurrency fraud like the NovaTech scheme enforcement.
Key facts from the case include:
- Milei promoted LIBRA on February 14, 2025, pushing its market cap to $4.5 billion before a 95% collapse.
- On-chain analysts uncovered eight team-connected wallets that extracted $107 million.
- Prosecutor Eduardo Taiano requested the full dismissal for all 11 named individuals without prior suspect interrogation.
- Excluded plaintiffs are appealing to the Federal Cassation Court to regain standing and reopen proceedings.
Opposition deputy Maximiliano Ferraro denounced the court decision as a planned judicial cover-up, pointing to a November 2025 congressional commission report that concluded Milei provided essential collaboration to the venture. Critics also raised concerns regarding a July decree signed by Milei that appointed the judge's wife to a federal court post. While the lower court archived the case, excluded plaintiffs have asked the Federal Cassation Court to reinstate them so they can pursue an official appeal.
Why It Matters
This ruling establishes a significant legal precedent regarding the boundary between personal promotional activity and criminal fraud in decentralized markets. By ruling that financial losses and rapid market crashes do not automatically constitute deception, the court sets a high bar for holding public officials legally liable for token endorsements. However, with plaintiffs appealing to the Federal Cassation Court and ongoing political scrutiny, the case demonstrates that political endorsements of speculative digital assets carry lasting legal and reputational risks.
