An Argentine federal court has dismissed the criminal case stemming from the LIBRA token scandal. Judge Marcelo Martínez de Giorgi issued a 60-page ruling on October 23, closing the investigation into President Javier Milei, his sister Karina Milei, U.S. businessman Hayden Davis, and eight others.
The dismissal followed a motion by prosecutor Eduardo Taiano. The inquiry began in February 2025 and examined claims of fraud, influence peddling, abuse of authority, and conflicts of interest involving public office.
Court Findings on Fraud Allegations
The judge concluded that a token price collapse and investor losses alone do not establish criminal fraud. The court found no identified false statement that directly persuaded buyers to acquire LIBRA and ruled that public attention surrounding a promoter does not automatically prove a deceptive scheme.
Regarding President Milei's promotion of LIBRA on X during the token's launch, the court acknowledged that his office gave the launch added visibility. However, the ruling stated that institutional influence by itself was not evidence of fraud. Investigators did not establish that the post was an official act or used state resources, and the court found no record of an administrative order or government contract tied to the promotion.
The token rallied briefly after the launch before crashing. Loss estimates have varied, with some reports exceeding $200 million. President Milei later removed his promotional post.
Findings on Other Defendants
For Karina Milei, the president's secretary general, investigators examined unsigned files recovered from Mauricio Novelli's phone but did not establish that she received payment for arranging presidential meetings. The court said the material did not prove a remunerated arrangement or influence peddling.
Hayden Davis, who described himself as a launch adviser, was dismissed after the judge found insufficient evidence of criminal coordination between Davis and government officials. The case file was closed for all defendants, including Novelli, Manuel Terrones Godoy, Sergio Morales, Julian Peh, María Alicia Rafaele, María Pía Novelli, Camilo Rodríguez Blanco, and Orlando Mellino.
Political Reaction and Ongoing Disputes
Reaction to the ruling split sharply along political lines. The presidential office described it as proof of Milei's innocence, while Milei characterized the case as a political and media operation against him.
Opposition lawmakers challenged the closure. Deputy Maximiliano Ferraro criticized the failure to call defendants for formal questioning and said investigators did not complete measures sought by affected investors.
Challenges over the removal of private complainants from Argentine proceedings remain pending before the Federal Criminal Cassation Court. A separate class action in New York federal court was dismissed in September on procedural and substantive grounds.
The Argentine ruling did not award compensation to token buyers nor determine a final investor-loss figure. It concluded only that evidence did not establish criminal liability under the offenses examined.
