An Argentine federal judge has dismissed the criminal investigation into President Javier Milei's involvement in the controversial LIBRA memecoin, ruling that the available evidence did not establish criminal wrongdoing.
On October 23, 2026, Judge Marcelo Martínez de Giorgi issued a 60-page decision clearing Milei, his sister Karina Milei and nine other individuals.
The ruling followed a dismissal request from prosecutor Eduardo Taiano, who concluded that the investigated conduct did not constitute a criminal offense.
Those cleared include Hayden Davis, crypto lobbyist Mauricio Novelli and KIP Protocol's Julian Peh.
None of the 11 individuals had been formally questioned as a suspect during the proceedings.
LIBRA Token Collapsed After Milei's Promotion
The controversy began on February 14, 2025, when Milei promoted the LIBRA cryptocurrency through his official X account.
The token subsequently surged, reaching a market capitalization exceeding $4.5 billion before collapsing approximately 95% within hours.
Milei deleted his promotional post following the crash and later maintained that he had acted in good faith.
On-chain analysts reported that eight wallets associated with the token's team withdrew approximately $107 million during the episode.
The sudden collapse triggered allegations of market manipulation and prompted investigations into the project's organizers and political connections.
Judge Finds Insufficient Evidence of Fraud
Judge Martínez de Giorgi concluded that Milei's public endorsement did not, by itself, establish fraudulent intent or criminal deception.
The investigation examined a note recovered from Novelli's phone describing three alleged payments totaling $5 million.
Although forensic investigators confirmed the note existed, they could not establish that it had been communicated to Davis or another recipient.
Investigators also recovered deleted communications and call records involving individuals connected to the case, but could not determine their contents.
Regarding Karina Milei, the judge found that authorizing Davis to enter Argentina's presidential headquarters did not demonstrate an unlawful agreement.
The ruling therefore rejected the criminal allegations based on the available evidence.
Milei Celebrates Ruling as Opposition Questions Decision
Milei welcomed the dismissal, describing the investigation as a politically motivated campaign against his presidency.
However, opposition lawmaker Maximiliano Ferraro, who led Congress's LIBRA investigative commission, criticized the decision and alleged a judicial cover-up.
The commission's November 2025 report had concluded that Milei provided essential support to the LIBRA project, a finding not addressed in the judge's ruling.
Opposition lawmakers also questioned the appointment of the judge's wife to a federal judicial position in July 2026. Her nomination had previously received Senate approval.
These allegations remain contested and do not establish misconduct by the judge.
Investors Explore Possible Appeal
Despite the dismissal, some LIBRA investors are attempting to regain the legal standing needed to challenge the decision.
Five investors were removed as private plaintiffs in July, with an appeals court upholding that decision in September.
The court concluded that purchasers had voluntarily assumed the risks associated with cryptocurrency investments.
The investors have since sought review from Argentina's Federal Criminal Cassation Court.
If reinstated, they could potentially appeal the dismissal, although the prosecutor is reportedly unlikely to challenge it.
For now, the ruling closes the criminal proceedings against Milei and the other investigated individuals, subject to any successful legal challenge.
The LIBRA collapse remains a major cryptocurrency controversy in Argentina, highlighting questions about political endorsements, investor protection and accountability in speculative token markets.
