Argentine Court Concludes Criminal Investigation Against President Milei and 10 Others Over LIBRA Fraud Allegations

The president's promotion and the price crash alone are insufficient to prove fraud, leaving questions about the massive losses.

Argentina's federal court has dismissed criminal charges against President Javier Milei and 10 others regarding allegations of fraud related to the meme coin LIBRA. The court ruled that investor losses and price crashes alone do not constitute proof of fraud.

On Friday, October 23, 2026, Judge Marcelo Martínez de Giorgi of the 8th Federal Criminal Court in Buenos Aires accepted a request from prosecutor Eduardo Taiano to conclude the criminal investigation into the LIBRA case. The individuals involved include President Milei, his sister Karina Milei, who serves as the Secretary General of the Presidency, and Hayden Davis, an American businessman said to be an advisor for the token launch, among a total of 11 people.

The incident began in February 2025 when President Milei introduced LIBRA on X. Following the post, the token's price skyrocketed but crashed within hours. The president deleted the post and explained that he acted in good faith without knowing the details.

While the court acknowledged that the public position may have amplified the post's influence, it determined that this alone could not substantiate a fraud scheme. LIBRA was indeed issued, and the blockchain nodes demonstrated the intended functionality, with no promises of future profits made.

Furthermore, it was concluded that Milei shared information solely in a personal capacity and did not abuse state power. Allegations that Karina received compensation for facilitating meetings were also unsubstantiated, leading to the investigation's closure under Article 336(3) of the Criminal Procedure Code.

Opposition Reacts to $99 Million Withdrawal and Incomplete Investigation

Although the criminal investigation has concluded, questions remain regarding the losses from LIBRA's crash and the flow of funds.

According to cryptocurrency analytics firm Nansen, 86% of LIBRA traders incurred total losses of $251 million (approximately 39.56 billion yen), while a minority of traders made profits of $180 million (approximately 28.37 billion yen).

Blockchain researchers pointed out that approximately $99 million (about 15.6 billion yen) worth of cryptocurrency was withdrawn from eight wallets associated with the founders. Argentina's Fintech Association also warned of the possibility of a rug pull, where developers collect funds from investors and sell off their holdings after inflating prices.

On the other hand, none of the 11 individuals under investigation have been formally questioned, and some evidence collection remains incomplete. Fund tracking has stalled due to a lack of authorized technical tools, and the contents of calls exchanged between Milei and Mauricio Novelli around the launch could not be identified.

Opposition lawmaker Maximiliano Ferraro criticized the ruling as judicial manipulation. The LIBRA committee in the lower house, chaired by him, concluded in a report in November 2025 that Milei provided significant support to the project, which was not mentioned in the ruling.

After the ruling, President Milei criticized the defamation from the opposition and the media. The ruling has not yet been finalized, and it remains unclear whether an appeal will be filed.

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