Judge: Milei’s Hype Not Criminal
On October 23, 2025, Argentine federal judge Marcelo Martínez de Giorgi dismissed the criminal investigation into President Javier Milei and ten others over their involvement in the launch and promotion of the Solana-based memecoin LIBRA. The ruling came eight months after Milei’s high-profile endorsement of the token on X (formerly Twitter), which triggered a rapid surge in LIBRA’s value before its catastrophic crash. Despite more than $250 million in investor losses, the judge concluded that neither Milei’s social media post nor his subsequent actions amounted to fraud under Argentine law.
The 60-page decision found no “criminally relevant deception,” stating that promotion alone does not establish intent to defraud absent specific evidence of misleading conduct or false promises. This finding extended to all eleven individuals named in the probe, including Karina Milei, Hayden Davis of Kelsier Ventures, lobbyist Mauricio Novelli, and KIP Protocol CEO Julian Peh.
Article 336, section 3 of Argentina’s code of criminal procedure was cited as the legal basis for the October 23 dismissal.
No Evidence of Presidential Payoff
The court scrutinized allegations that Karina Milei, who serves as secretary general and is the president’s sister, may have received money in exchange for access to Javier Milei or steered proceeds from LIBRA to public officials. However, Judge Martínez de Giorgi found no evidence supporting these claims. None of the 11 investigated parties were formally questioned as suspects during the process, and the ruling emphasized there was no official act linking public resources or authority to the LIBRA project.
The judge specifically rejected accusations of abuse of authority and negotiations incompatible with public office.
This lack of direct financial connection between government officials and LIBRA proceeds proved decisive. While blockchain researchers identified eight wallets linked to LIBRA’s creator that withdrew approximately $99 million in crypto assets during the token’s collapse, investigators could not tie any portion of those funds back to Milei or his inner circle.
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LIBRA Losses, But No Legal Fault
LIBRA debuted with fanfare on February 14, 2025, when President Milei posted on X that the token would help fund small businesses across Argentina. Within hours, LIBRA’s market cap soared to $4.56 billion—only to plummet by more than 94% before dawn, according to Cointelegraph and Dexscreener data cited in court filings. Investors ultimately lost over $250 million as a result of this dramatic reversal.
In May 2025, Circle froze $57 million in USDC stablecoins linked to addresses associated with LIBRA’s collapse. Despite these concrete losses and ongoing fallout for retail investors, Judge Martínez de Giorgi ruled that the facts did not fit any crime recognized under article 336, section 3 of Argentina’s national code of criminal procedure. The case file will be archived once the decision becomes final; five investors who attempted to join as private plaintiffs had already been removed from the case by July.
The headline number—$250 million lost—underscores the scale of damage for investors; yet without proof of deliberate deception or misuse of office, legal accountability for public officials proved elusive.
Prosecutor Agreed: Case Should End
The president’s office noted that dismissal came at the request of a federal prosecutor who agreed there was insufficient evidence for criminal charges against any party involved. As reported by coindesk.com, both investigators and prosecutors concurred that neither Javier nor Karina Milei engaged in illegal conduct related to LIBRA’s launch or collapse.
Notably, none of those named—including U.S. businessman Hayden Davis—were required to testify as suspects throughout the investigation. The ruling has not yet appeared on Argentina’s official judiciary website as of Friday evening.
It is unclear whether investors will pursue further civil action after a New York federal judge dismissed a related lawsuit against Kelsier Labs and Davis with prejudice on September 29.
Why it matters: Political Fallout vs Legal Charges
For Argentina’s political landscape, this outcome draws a stark line between reputational risk and criminal liability. While President Milei faces scrutiny over his willingness to promote volatile crypto projects from his official platform—and while retail investors suffered steep losses—the judiciary found no grounds for prosecution based solely on hype or failed promises. The contrast between massive financial harm ($250 million) and zero legal culpability among public officials highlights ongoing gaps in how emerging digital assets are regulated worldwide.
Ultimately, while officials walk away without charges this time, calls for clearer rules around political endorsements and digital asset launches are likely only to intensify as crypto adoption grows in Latin America.
The Main Points
- •On October 23, 2025, Judge Marcelo Martínez de Giorgi dismissed the LIBRA memecoin criminal case against President Javier Milei and 10 others.
- •Despite LIBRA’s crash causing over $250 million in investor losses after its February 14, 2025 launch, no fraud was found.
- •The judge cited article 336, section 3 of Argentina’s criminal code and found no evidence of official misconduct or illicit payments.
Signals to keep an eye on
The dismissal of the LIBRA criminal case against President Milei and 10 others by Judge Marcelo Martínez de Giorgi on October 23 will only be archived once final, so if any appeals are filed before that occurs, the legal status of the case could immediately shift and delay closure for those involved.