Argentine President Javier Milei Cleared in $LIBRA Cryptocurrency Investigation

Argentine President Javier Milei has been cleared of any criminal charges in the cryptocurrency case involving the memecoin $LIBRA, after a federal judge ordered the closure of the investigation against him, his sister Karina, and nine other individuals. In a ruling issued on October 23, Judge Marcelo Martínez de Giorgi determined that the evidence did not substantiate any criminal offense. The decision followed a request by prosecutor Eduardo Taiano, bringing the criminal inquiry to a close for now, though potential appeals remain under consideration.

The controversy began in February 2025 when Milei published a post on X promoting $LIBRA, a digital memecoin whose value is heavily driven by public enthusiasm, advertising, and speculative trading. Following his endorsement, the token's price surged, with its market capitalization reaching a peak of approximately $4.5 billion. However, within hours, the price plummeted by roughly 95%, leaving numerous investors with severe financial losses. Milei subsequently deleted the post and maintained that he acted in good faith without knowing the project's specific details.

According to blockchain analytics, eight crypto wallets linked to the project's team withdrew funds totaling approximately $107 million. American entrepreneur Hayden Davis, who described himself as an advisor for the token's launch, was among those cleared in the dismissed case. The affair raised suspicions that investors were lured in through presidential exposure while project insiders liquidated their holdings. Nevertheless, financial losses and suspicions alone were deemed insufficient to prove criminal fraud under the law.

In his 60-page ruling, the judge stated that the mere fact that Milei's presidential status granted the cryptocurrency significant public visibility does not prove the existence of a fraudulent scheme. Investigators also examined a document found on the phone of businessman Mauricio Novelli, which allegedly outlined three payments totaling $5 million. However, the investigation failed to establish that the document was transmitted to Davis or any other party, and deleted chat logs could not be fully recovered.

The ruling drew sharply contrasting reactions. Milei welcomed the decision, asserting that the controversy was a politically motivated attempt to damage his reputation. Conversely, opposition lawmakers accused the judicial system of a cover-up. Some affected investors who had previously been removed from the proceedings as plaintiffs are now attempting to reinstate their legal standing in order to pursue an appeal.

The case underscores the profound risks associated with public figures promoting speculative crypto assets: even when criminal proceedings are closed, vital questions regarding public accountability, transparency, and investor protection continue to linger.