Argentine President Javier Milei has been cleared of criminal wrongdoing in the LIBRA meme coin scandal following a federal court ruling.
On Friday, Federal Judge Marcelo Martinez de Giorgi ruled that the investigation was without merit because there was no evidence of fraud in connection with the collapse of the cryptocurrency. The ruling exonerated Milei, his sister, Karina Milei, and nine others who were accused in the launch of the token.
Judge Dismisses LIBRA Meme Coin Fraud Allegations
The court ruling found that the events surrounding LIBRA’s promotion did not establish criminal conduct. Judge Martinez de Giorgi ruled that Milei’s public role might have raised investor interest but wasn’t proven to be a fraud.
The investigation started in February 2025 when the LIBRA token gained significant traction in its price surge after Milei posted about it on X. However, the cryptocurrency collapsed within hours, leaving investors facing losses and raising questions about its launch.
The judge found insufficient evidence that the price changes in the token and the losses of the investors were part of a fraudulent scheme. The ruling came after months of investigations into whether the Argentine president Javier Milei knew that he was being used to promote the cryptocurrency.
Karina Milei and Hayden Davis Cleared in Investigation
The ruling also applied to Argentina’s presidential secretary-general, Karina Milei, who was accused of contacts with cryptocurrency entrepreneurs. The investigators discovered no payments had been received for arranging access to her brother.
Judge Martinez de Giorgi ruled that holding meetings did not constitute influence peddling in the absence of evidence of tainted payments. The ruling also involved nine others, including Hayden Davis, a businessman and described as the “launch adviser” of LIBRA.
Earlier, Davis admitted to having nearly $100 million in his possession after the collapse of the token, but made no admission of fault during the investigation. The ruling follows previous investigations into LIBRA’s launch and insider trading allegations.
LIBRA Collapse Triggered $99M Withdrawal Concerns
Argentine president Javier Milei’s social media post in February 2025 announcing his support for LIBRA sparked much interest in the market. The president later removed that tweet because the value of the token dropped and asserted that he had no business with its creators.
Blockchain researchers found that about $99 million was spent in the past using eight cryptocurrency wallet addresses linked to the token’s creator. The Fintech chamber in Argentina, however, expressed concern that the market could be manipulated, though the court did not see enough evidence for criminal charges.
When promoting the project, Milei previously claimed he did so in good faith and was unaware of its full scope. The controversy had prompted the Argentine government to establish an investigative task force, which was later dissolved.
The Friday ruling, as a result, sends the criminal action to closure when finalized, clearing the defendants in that case.
