An Argentine federal court on October 23, 2026, dismissed the criminal case against President Javier Milei, his sister Karina Milei and nine others investigated over the collapse of the LIBRA memecoin. The decision found that the established facts did not constitute a crime and that the evidence did not support allegations of fraud or corrupt conduct.

Judge Marcelo Martínez de Giorgi issued the 60-page ruling in case CFP 772/2025 at the request of prosecutor Eduardo Taiano, who had previously sought to end the criminal prosecution.

The decision also covers U.S. entrepreneur Hayden Davis, who was linked to LIBRA’s launch; lobbyist Mauricio Novelli; Novelli’s partner, Manuel Terrones Godoy; former Argentine regulatory adviser Sergio Morales; and other people involved in the investigation.

Reasons for the dismissal

The investigation followed LIBRA’s launch on February 14, 2025. Milei posted a message on X supporting the project, which was presented as a way to finance small businesses in Argentina.

After Milei’s post, LIBRA’s price surged to nearly $5 before collapsing within hours. According to the case file, more than 40,000 buyers suffered losses, while about $100 million was withdrawn from several wallets linked to the project.

Investigators examined whether the president or people in his circle were involved in fraud, influence peddling, abuse of authority or the illegal receipt of funds. The judge concluded, however, that a head of state’s public support for a crypto asset did not by itself establish fraudulent intent.

The ruling said Milei’s office may have increased investor confidence in the project and drawn attention to the token. Prosecutors nevertheless failed to identify specific false statements that induced buyers to purchase LIBRA.

The court also noted that memecoins are highly volatile, speculative assets, and said a sharp price collapse and investor losses were not by themselves proof of a crime.

Alleged ties examined

Investigators also reviewed alleged corrupt links between project participants and Milei’s inner circle. They found a document on Novelli’s phone referring to possible payments to Javier and Karina Milei. Argentine media had previously reported an alleged arrangement involving a $5 million agreement to promote LIBRA.

A forensic examination did not establish that the document had been shared with third parties or that the arrangements it described had existed. Investigators also found deleted chats with a contact saved as “Karina Milei RRPP” and records of phone calls between the president and Novelli, but they could not recover the calls’ content.

The court found no evidence that Karina Milei received money to arrange meetings between businesspeople and the president. It also found that Javier Milei’s LIBRA post was not an official government act and did not involve state resources.

Investors seek right to appeal

The court dismissed the case without summoning any of the 11 people for questioning as defendants, Perfil reported.

Five affected investors were removed as private prosecutors in July 2026. An appellate court upheld that decision in September, citing buyers’ voluntary acceptance of the risks associated with investing in a speculative asset.

The investors appealed to the Federal Court of Cassation to have their procedural status restored. If the court grants their appeal, they will be able to challenge the dismissal.

Milei welcomed the ruling and characterized the proceedings as a political and media campaign against his administration. Opposition lawmaker Maximiliano Ferraro criticized the decision, saying several circumstances — including meetings between project participants and government officials and financial transfers — had not been adequately explained.

The ruling applies to criminal case CFP 772/2025 and does not automatically terminate other LIBRA-related proceedings, including civil lawsuits. An Argentine court previously froze 25 cryptocurrency wallets during the investigation and ordered six international exchanges to provide information about their owners.

Separately, Argentina’s Anti-Corruption Office found no ethical violations in Milei’s promotion of the token in June 2025.

Source: Incrypted