Argentina Drops Criminal Probe Into Milei Over Crashed LIBRA Memecoin

An Argentine federal judge dismissed the criminal probe into President Javier Milei over his promotion of the memecoin LIBRA, a ruling that also cleared his sister Karina Milei and self-described token adviser Hayden Davis. According to CoinDesk, Judge Marcelo Martínez de Giorgi found that Milei's endorsement, while it may have given the token "greater impact," was not sufficient on its own to establish fraud without evidence of specific deception.

What the LIBRA Dismissal Actually Found

The ruling, reported by CoinDesk citing Reuters and the Argentine fact-checking outlet Chequeado, cleared 11 people in total, including lobbyist Mauricio Novelli and KIP Protocol CEO Julian Peh. None of the 11 had been formally questioned during the investigation. The judge found no evidence that Karina Milei sought or received payment for access to the president, nor that LIBRA proceeds reached public officials.

LIBRA launched on Solana in February 2025 after Milei posted about it on X on February 14, 2025, saying it would help fund small businesses in Argentina. The token rose exponentially before crashing more than 90%, ultimately losing over 95% of its value after peaking near $5. CoinDesk's report notes blockchain researchers traced roughly $99 million in crypto withdrawn from eight wallets linked to the token's creator, destroying more than $250 million in investor wealth in the process. Davis has said he held close to $100 million after the collapse but denies any wrongdoing. Separately, CoinDesk previously reported obtaining text messages in which Davis described buying access to the president's inner circle and sending money to Karina Milei; Davis has denied making any payments to either Milei or his sister.

Prosecutor Eduardo Taiano, who requested the dismissal, is not expected to appeal, but the case may not be fully closed. In July, the judge removed the investors who had joined the case as plaintiffs, and an appeals court upheld that decision in September. Those investors have since challenged their removal before Argentina's Federal Criminal Cassation Court; if reinstated, they could appeal the dismissal itself.

Why This Matters for Memecoin Investors

LIBRA remains a stark recent example of political-endorsement risk in memecoin markets. The gap between the roughly $99 million extracted by creator-linked wallets and the more than $250 million in destroyed investor value illustrates how insiders with early wallet access can exit well before retail investors recognize a collapse. The dismissal, arriving about 20 months after the February 2025 launch, also shows how far legal proceedings can lag the market damage caused by endorsement-driven token launches.

In an official statement cited by CoinDesk, Milei's office characterized the original probe, opened ahead of Argentina's 2025 midterm elections, as an attempt to damage the president's reputation in an election year.