Javier Milei cleared in LIBRA memecoin scandal as judge dismisses charges

After almost 19 months, Argentina’s Federal Judge Marcelo Martínez de Giorgi has finally dismissed the criminal case against President Javier Milei, his sister Karina Milei, and several other individuals linked to the controversial LIBRA cryptocurrency.

The LIBRA memecoin scandal

Launched on the 14th of February 2025, President Milei had faced scrutiny after promoting the LIBRA memecoin.

This was because the memecoin was presented in such a way that it appeared to fund small businesses but in reality surged to a $4.6 billion market capitalization before collapsing and wiping out billions in value.

Back then, reports alleged that insiders withdrew millions of dollars, raising concerns about a potential rug pull and market manipulation. Additionally, Milei’s post reportedly allowed a small group of wallets to withdraw approximately $100 million, while more than 40,000 investors suffered losses.

Milei later withdrew his endorsement and said that he had not fully understood the project. Naturally, the controversy prompted an investigation into the token’s launch and possible misconduct.

Things further took a serious turn when, within just seven hours of launch, LIBRA had plunged 96%, wiping out over $4 billion in market value.

Judge Giorgi clears President Milei after months

Now, rolling back to the present time, the judge’s decision followed a request from federal prosecutor Eduardo Taiano, who sought the dismissal of all charges.

Taking over the case, the judge investigated whether Milei’s promotion of $LIBRA on X helped facilitate a fraudulent scheme that caused significant financial losses for investors.

However, the judge concluded that the available evidence did not establish a specific deception that induced investors to buy the token. He further argued that financial losses and unequal profit distribution alone were insufficient to prove fraud.

Moreover, he also rejected allegations of abuse of authority and conduct incompatible with public office, noting that Milei’s post came from his personal X account and that investigators had not established official government involvement in the project.

The existence of documentation alluding to the Government, as well as references to the Tech Forum and certain individuals, is insufficient to prove that an agreement was reached to remunerate Karina Milei for facilitating meetings with the president. Especially since said document lacks signatures, which renders it inadmissible as evidence.

The judge also dismissed allegations against American businessman Hayden Mark Davis, Novelli, his associates, and other individuals connected to the project.

Needless to say, Javier Milei celebrated this decision when he said,

This coincided with the LIBRA memecoin trading at $0.00007433 at press time after a drop of 2.7% in the past 24 hours.

Critics are unhappy with the decision

But, this was not a universally accepted decison.

Pedro Biscay, Executive Director of the Center for Research and Prevention of Economic Crime (CIPCE), criticized this moment and put it best when he said,

The dismissal of the $LIBRA case is a premature decision that fails to consider the crucial role of the President of the Nation in the dissemination of the cryptocurrency, an aspect that must be debated in a public trial. We cannot allow an investigation of this magnitude to be closed prematurely and ultimately solidify a pact of impunity.

Final Summary

• President Milei faced scrutiny after promoting the LIBRA memecoin as it surged to a $4.6 billion market capitalization before collapsing. 
• The judge concluded that the available evidence did not establish a specific deception that induced investors to buy the token.