Argentina drops criminal probe into President Milei over crashed memecoin LIBRA

Argentina Dismisses Criminal Probe into President Milei Over LIBRA Memecoin

An Argentine federal judge has thrown out the criminal case that targeted President Javier Milei, his sister Karina Milei, and several advisers for promoting LIBRA, a Solana‑based memecoin that collapsed after a meteoric rise in early 2025. The ruling underscores the difficulty of proving fraud in high‑profile crypto promotions and highlights the political backdrop of Argentina’s 2025 midterm elections.

Why the Case Was Brought

The investigation began after LIBRA surged to roughly $5 per token, only to lose more than 95% of its value weeks later. Critics pointed to Milei’s February 2025 tweet endorsing the token as a catalyst for the rapid price spike, and to the subsequent withdrawal of about $99 million from wallets linked to the token’s creator. Allegations also included claims that U.S. businessman Hayden Davis, who called himself an adviser to LIBRA, had paid money to Karina Milei in exchange for political access.

The Judge’s Reasoning

Judge Marcelo Martínez de Giorgi concluded that while Milei’s endorsement may have amplified LIBRA’s visibility, the evidence did not rise to the level of criminal fraud. The decision rested on two key points:

1. No Specific Deception Proven – The prosecution failed to demonstrate that Milei knowingly misled investors or that his social‑media post contained false statements intended to induce investment.
2. No Direct Financial Benefit – Court records showed no proof that Karina Milei received money for facilitating access to the president, nor that any proceeds from LIBRA reached public officials.

The judge also noted that none of the eleven individuals named in the case, including lobbyist Mauricio Novelli and KIP Protocol CEO Julian Peh, had been formally questioned.

Political and Legal After‑effects

The dismissal came shortly after a prosecutor’s request to close the case, a move the president’s office framed as a response to an election‑year attempt to tarnish Milei’s reputation. While the prosecutor, Eduardo Taiano, is not expected to appeal, the matter is not entirely settled. Earlier this year, the judge removed the private investors who had joined the case as plaintiffs, a decision upheld by an appeals court. Those investors have appealed to the Federal Criminal Cassation Court, and a reversal could reopen the door for further legal scrutiny.

Lessons for Crypto Promotion

Milei’s LIBRA episode offers several takeaways for policymakers, investors, and public figures:

• Clear Disclosure Standards – Public officials who comment on speculative assets should provide transparent disclosures to avoid the appearance of endorsement.
• Evidence Threshold for Fraud – Prosecutors must establish a concrete link between a promoter’s statements and intentional deception, not merely a correlation between hype and price movement.
• Regulatory Vigilance – Even without criminal liability, the episode may prompt regulators to consider stricter guidelines on political figures’ involvement in crypto projects.

Looking Ahead

The LIBRA saga has already left a sizable dent in investor confidence, with over $250 million in wealth erased and the token’s creator walking away with near‑$100 million in crypto assets. While the legal battle has paused, the broader conversation about political influence in the crypto space is likely to intensify, especially as Argentina navigates economic turbulence and upcoming elections.

---

This article provides a concise overview of the recent judicial decision and its implications, without introducing new quotations or unverifiable claims.