Argentine Judge Clears Milei of Crypto Fraud in LIBRA Case

Key points

• Judge Marcelo Martinez de Giorgi ruled that the promotion of $Libra did not amount to a fraudulent scheme, stating that investor losses and price volatility are insufficient to prove criminal deception.
• The case was dismissed at the request of federal prosecutor Eduardo Taiano, who argued the facts did not fit a legal category for fraud.
• Milei had posted about the token on X in February 2025, claiming it would fund small businesses, but deleted the post hours later as the coin’s value plummeted by over 94%.
• The judge also dismissed charges against US businessman Hayden Davis, who acted as a launch adviser and held nearly $100 million after the crash.
• The presidential office declared the ruling as proof of Milei’s innocence, while opposition members had previously threatened impeachment proceedings.

Background

The $Libra incident occurred in February 2025, when President Milei shared a link to the meme coin on X, describing it as a project to support small Argentine businesses. The token’s market cap peaked at $4.56 billion before crashing within 11 hours. Milei later deleted the post and denied involvement, claiming he acted in good faith. The controversy led to accusations of a 'rug pull' and impeachment threats from opposition lawmakers. In May 2025, Circle froze $57 million in USDC linked to the scandal, and a US federal judge dismissed an investor lawsuit against the token’s developers in September 2025.

How outlets are covering it

Al Jazeera and BBC report the dismissal as a definitive end to the criminal inquiry, emphasizing the judge’s finding that no 'criminally relevant deception' was proven. Yahoo Finance provides additional legal detail, noting the dismissal was based on Article 336 of Argentina’s criminal procedure code and that the case was not yet final due to potential appeals. All sources agree that Milei’s institutional status gave the launch greater impact but did not constitute fraud. The presidential office framed the ruling as a victory against an 'institutional coup,' while opposition members had previously called for impeachment. BBC highlights that Milei has not yet publicly responded to the news of the case being dropped, whereas Al Jazeera notes the presidential office’s celebratory post on X.

Why it matters

The dismissal of the $Libra case removes a major legal threat to President Milei’s administration and reinforces his political standing. It also highlights the challenges in prosecuting crypto-related fraud, particularly when public figures are involved. The case underscores the volatility of meme coins and the potential for significant investor losses, even when no criminal intent is proven. Additionally, the ruling may influence how other countries approach regulatory and legal frameworks for cryptocurrency promotions by public officials.

What to watch

The case is not yet final, as the judge ordered the file to be archived only once the decision is final. Investors who were removed as private plaintiffs in July 2025 may still appeal the decision. Milei’s administration will likely continue its austerity measures, which have reduced inflation to about 2 percent per month. The outcome of the US midterm elections may also impact Milei’s political alliances, particularly his relationship with US President Donald Trump.