Argentina's federal judge Marcelo Martinez de Giorgi has dismissed the criminal investigation into President Javier Milei, his sister Karina Milei, and U.S. businessman Hayden Davis connected to the LIBRA cryptocurrency scandal. The October 23 ruling came after prosecutor Eduardo Taiano recommended closing the case.
The investigation examined whether Milei's promotion of the LIBRA token involved fraud, abuse of authority, or misuse of public resources. According to the 60-page ruling, the judge concluded that the reported events did not meet the legal standard for a criminal offense. Investor losses exceeding $200 million and sharp price movements alone were deemed insufficient to establish fraud.
Details of the Dismissal
The judge acknowledged that Milei's position as president could have amplified the impact of the token launch but stated that his actions alone did not establish a fraudulent scheme. The investigation into Karina Milei, the president's chief of staff, was also closed, with the judge finding no evidence that she received payments to arrange meetings between her brother and the token's creators. Facilitating contact alone, according to the ruling, did not establish influence peddling.
U.S. businessman Hayden Davis, who advised the token's launch, was also cleared in the case. The judge found insufficient evidence of criminal collusion between Davis and Argentina's government. Davis has denied wrongdoing throughout the investigation.
Background of the LIBRA Scandal
The scandal began in February 2025 when Milei promoted LIBRA on X, stating that the project would support small businesses. Within hours, Milei deleted the post and distanced himself from the project. The token's price subsequently collapsed, with investor losses estimated between $100 million and $251 million.
Following the dismissal, Argentina's presidential office stated on X that the investigation had provided absolute proof of his innocence.
