An Argentine federal magistrate has thrown out the criminal lawsuit directed at President Javier Milei regarding his promotion of LIBRA, a digital token that plummeted in value shortly following its debut in February 2025.
The legal dismissal additionally includes Milei’s sister Karina, who serves as the secretary general of the presidency. Furthermore, American entrepreneur Hayden Davis, who identified himself as an advisor for the token’s rollout, was encompassed within the dropped charges, as reported by Reuters.
Altogether, eleven individuals were absolved, among them lobbyist Mauricio Novelli and KIP Protocol CEO Julian Peh, based on details from Infobae. None among them had undergone formal interrogation throughout the proceedings.
Judge Marcelo Martínez de Giorgi admitted that Milei’s endorsement likely lent the debut greater visibility, yet noted that his social media endorsement coupled with the subsequent crash of LIBRA fell short of proving fraud in the absence of explicit deceptive actions, according to the filing and court records.
Additionally, the magistrate uncovered no proof indicating that Karina Milei sought or accepted funds in exchange for granting entry to the head of state, nor that financial returns stemming from LIBRA made their way to government officials, as highlighted by Argentine verification platform Chequeado.
Back in February 2025, CoinDesk disclosed that it secured text message exchanges showing Davis boasting about purchasing access into the president’s inner circle, transferring funds to Karina Milei, and asserting his capacity to sway presidential choices. Davis subsequently rejected allegations of executing payments directed at either Milei or his sister.
Milei shared a promotional post for LIBRA via X on February 14, 2025, stating that the Solana-based digital asset would support financing for small enterprises throughout Argentina. The asset experienced massive growth prior to shedding over 90% of its worth, resulting in the wipeout of upwards of $250 million in stakeholder assets.
On-chain investigators discovered that eight crypto addresses associated with the project’s founder had cashed out approximately $99 million worth of digital currencies, according to findings. Davis acknowledged possessing nearly $100 million following the market drop while maintaining his innocence regarding any illegal acts.
Milei later removed his initial publication and disavowed any association with LIBRA. He explained that he proceeded in good faith and withdrew his backing once he gained a deeper understanding of the initiative.
Through an official release, the presidential administration indicated that the magistrate approved a prosecutor’s motion to drop the matter because the investigated actions failed to meet the criteria of a criminal offense. The statement framed the investigation, launched prior to Argentina’s legislative elections in 2025, as a politically motivated effort to damage Milei’s image during an election cycle.
Even so, the legal matter might not be completely settled.
Prosecutor Eduardo Taiano, who initially pushed for the case closure, is not anticipated to file an appeal. During July, the judge dismissed the retail investors who originally entered the proceeding as claimants, and a higher appellate bench affirmed that ruling in September.
Those stakeholders have contested their exclusion before the Federal Criminal Cassation Court. Should they successfully regain their standing, they retain the option to challenge the dismissal.
Read more: Will Argentinian President Milei’s Crypto ‘Fiasco’ Be a Deathblow for Memecoin Craze?
Originally published at https://www.coindesk.com/business/2026/10/24/argentina-drops-criminal-probe-into-president-milei-over-crashed-memecoin-libra.
