An Argentine federal judge cleared President Javier Milei, his sister Karina Milei, and nine other individuals in the criminal investigation into the LIBRA token on October 23, finding insufficient evidence of fraud or other criminal offenses. Federal Judge Marcelo Martínez de Giorgi issued the 60-page ruling after prosecutor Eduardo Taiano requested dismissal of the case. The investigation centered on the LIBRA token's February 2025 collapse, which saw the token lose more than 90% of its value within hours after Milei promoted it on February 14, 2025, while on-chain analysis showed wallets associated with the project withdrew around $100 million during the collapse.
Court Found Insufficient Evidence to Establish Fraud
The investigation examined Milei's February 14, 2025 social media post promoting LIBRA as a private initiative to support Argentine businesses. The token reached above a $4 billion market capitalization before losing more than 90% of its value within hours. Judge Martínez de Giorgi found that while Milei's position as president gave the promotion exceptional visibility, prominence and publicity surrounding a token launch were not sufficient by themselves to establish fraudulent deception.
The ruling also addressed evidence that initially appeared damaging. A note recovered from crypto lobbyist Mauricio Novelli's phone referred to three payments totaling $5 million. However, investigators established that the note existed in Apple Notes but could not prove it had been sent to Hayden Davis, who described himself as a LIBRA launch adviser, or another recipient. Phone records documented communications between Milei and Novelli around the launch, including multiple calls on the night LIBRA launched, but the contents of those conversations were not established.
The decision covers 11 people investigated: Milei, Karina Milei, Davis, Novelli, KIP Protocol executive Julian Peh, and six others. None was called to give a formal suspect statement before the dismissal.
Ruling Reduces Milei's Criminal Exposure from LIBRA Collapse
The October 23 decision is broader than an earlier Anti-Corruption Office finding. That review addressed whether Milei violated public-ethics rules when promoting LIBRA from his personal social-media account and cleared him. The new ruling concerns the federal criminal investigation itself and concludes that evidence did not establish the required elements of the offenses under investigation.
The court's conclusion contrasts with political findings surrounding the project. An Argentine congressional investigative commission previously concluded that Milei had provided "essential collaboration" to LIBRA by giving the project visibility. A congressional finding, however, does not establish criminal liability and applies a different evidentiary and institutional framework from a federal criminal proceeding.
Excluded Investors Retain Narrow Procedural Appeal Route
Prosecutor Taiano requested the dismissal and is not expected to appeal it. Investors who participated in the case as private plaintiffs were removed from the proceeding in July. An appeals court upheld their removal in September, finding that LIBRA purchasers had voluntarily assumed risks associated with buying the token. That left the criminal case without private plaintiffs able to challenge the October dismissal directly.
The excluded investors are seeking reinstatement before Argentina's Federal Criminal Cassation Court. If they recover their status as plaintiffs, they could attempt to appeal Martínez de Giorgi's ruling. Their challenge had not been resolved when the dismissal was issued.
Decision Leaves Token Launch Questions Unresolved
The judgment answers the criminal-liability question before Martínez de Giorgi but does not establish that every aspect of LIBRA's launch was benign. The token experienced an extraordinary concentration of gains and losses, while investigators documented communications among people involved around the time of Milei's promotion. The court's conclusion was that available evidence did not establish the deception, illicit agreement, or other elements necessary for the criminal charges under examination.
The ruling closes the most consequential phase of the Argentine criminal investigation unless excluded investors regain standing and successfully challenge the decision.
FAQ
What did Judge Martínez de Giorgi decide on October 23 regarding Milei and the LIBRA token?
Federal Judge Marcelo Martínez de Giorgi cleared President Javier Milei, his sister Karina Milei, and nine other individuals in the criminal investigation into the LIBRA token, finding that the evidence did not establish fraud or another criminal offense. The 60-page ruling was issued after prosecutor Eduardo Taiano requested dismissal of the case.
Why did the court reject the fraud case against Milei?
The court found that while Milei's position as president gave his February 14, 2025 promotion of LIBRA exceptional visibility, prominence and publicity surrounding a token launch were not sufficient by themselves to establish fraudulent deception. Investigators could not prove that a recovered note referencing $5 million in payments had been sent to recipients, and phone records documented communications but not their contents.
Can the LIBRA criminal case against Milei be reopened?
Investors who were excluded as private plaintiffs in July are seeking reinstatement before Argentina's Federal Criminal Cassation Court. If they recover their status as plaintiffs, they could attempt to appeal the October 23 dismissal. Prosecutor Taiano, who requested the dismissal, is not expected to appeal it.
