An Argentine judge dropped the criminal probe into President Javier Milei over the collapsed LIBRA memecoin. The case tested whether a head of state can face fraud charges for promoting a token that erased more than $250 million (USD) in investor funds.
What actually happened
Judge Marcelo Martinez de Giorgi dismissed the case on 24 October 2026, clearing Milei, his sister Karina Milei, and adviser Hayden Davis, according to CoinDesk. In total, 11 people were cleared, including lobbyist Mauricio Novelli and KIP Protocol CEO Julian Peh. Milei promoted LIBRA on X on 14 February 2025, calling it a fund for small businesses. The Solana-based token reached about $5 before losing more than 90% of its value, destroying over $250 million in investor wealth. Blockchain researchers traced about $99 million (USD) in crypto withdrawn from eight wallets linked to LIBRA's creator. The judge said Milei's post gave the launch 'greater impact' but found no evidence of 'a specific deception' needed to prove fraud.
How we got here
LIBRA's collapse in February 2025 became one of crypto's most watched political scandals. CoinDesk had reported obtaining text messages in which Davis described paying for access to Milei's inner circle and sending money to Karina Milei, claims he later denied. Milei deleted his promotional post and denied any formal tie to the project, saying he acted in good faith before withdrawing support. Prosecutors opened the criminal probe ahead of Argentina's 2025 midterm elections. Milei's office has called the investigation a politically motivated attempt to damage his reputation during that campaign.
Why this matters for you
For crypto holders, the dismissal sets a notable precedent. It suggests a public figure's endorsement of a token, even one that collapses and destroys investor wealth, may not alone meet the legal bar for fraud. For builders and promoters, the ruling could lower the perceived legal risk of political or celebrity memecoin endorsements, though reputational damage remains real. For investors who lost money in LIBRA, the ruling closes one path to accountability through Argentina's criminal courts, though a civil route may still open if plaintiffs are reinstated.
The bigger question
If a leader's endorsement of a token is legally separate from the token's performance, who bears responsibility when a promoted asset collapses and wipes out investor savings? Regulators and courts may answer this differently across jurisdictions, leaving investors without a consistent global standard for what counts as deception.
What to watch
Investors removed from the case in July 2025 have challenged that decision before Argentina's Federal Criminal Cassation Court. If reinstated, they could appeal the dismissal itself. Prosecutor Eduardo Taiano is not expected to appeal. No date has been set for the appellate court's next ruling.
