Argentine judge closes LIBRA token case against Milei and ten other people

what happened

Federal judge Marcelo Martínez de Giorgi has halted the criminal probe into Argentina's president Javier Milei over his backing of the LIBRA token, ruling that the conduct under review does not amount to any legal offense for Milei or ten other people. The 60-page decision also clears Milei's sister Karina Milei, who heads the presidency's general secretariat, along with Hayden Davis, Mauricio Novelli and Julian Peh of KIP Protocol. Prosecutor Eduardo Taiano had requested the dismissal, according to The Block.

The judge concluded that the evidence showed no “criminally relevant deception.” He wrote that Milei's office could have lent the token particular visibility, but that a promoter's fame and the publicity around a launch do not by themselves constitute a fraudulent scheme. A note found on Novelli's phone, reported by El Destape in March, described three payments totaling $5 million, yet forensic work could not show it was sent to Davis or anyone else. Karina Milei's only documented tie to Davis was an authorization for his entry to the Casa Rosada on July 16, 2024, which the judge said does not on its own prove an illicit agreement.

Milei applauded the ruling on X, calling it a restoration of justice. Opposition deputy Maximiliano Ferraro, who chaired the congressional LIBRA commission, accused the judiciary of a planned cover-up and impunity. He pointed to the commission's November 2025 report, which said Milei provided “essential collaboration” to the project, a finding the ruling does not mention. According to Perfil, the prosecutor is not expected to appeal. Five investors removed as plaintiffs in July have asked the Federal Criminal Cassation Court to reinstate them, which would allow them to challenge the dismissal.

why it matters

For markets, the case mainly signals political and reputational risk around the LIBRA token, whose market cap topped $4.5 billion before falling about 95% within hours of its rise, according to onchain analysts. If reinstated investors win an appeal, the matter could return to the spotlight, and opposition criticism of the judge's wife being named to a federal court adds to the political debate.

market impact

LIBRA token and Argentine assets: lower legal risk for promoters, but appeals could revive the issue

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