Argentine justice has just cleared Javier Milei in the LIBRA crypto scandal. On October 23, federal judge Marcelo Martínez de Giorgi dismissed the case in favor of the president, his sister Karina and nine others. After 20 months of investigation, the magistrate considers that no criminal fraud has been established. An unexpected decision in a case marked by the collapse of 95% of the token and nearly 100 million dollars withdrawn by a few wallets.
In brief
- Javier Milei and ten others benefit from dismissal of the LIBRA crypto case.
- The judge considers that the promotion of the token is not enough to establish fraud.
- Investors are still seeking the right to challenge the decision.
Justice clears Milei in LIBRA crypto scandal
The file has just experienced a major turnaround. On Friday October 23, Marcelo Martínez de Giorgi issued a 60-page decision ending, at this stage, the criminal proceedings against eleven people involved in the LIBRA crypto affair.
In May 2025, the Argentine justice system lifted banking secrecy on Javier Milei’s accounts. Investigators then sought to determine whether the president or his entourage had benefited financially from the launch of the token.
The judge has just followed the request of prosecutor Eduardo Taiano, in favor of dropping the charges. Javier Milei, Karina Milei, American entrepreneur Hayden Davis and lobbyist Mauricio Novelli are among the beneficiaries of this decision.
For the magistrate, the elements gathered do not demonstrate any criminally reprehensible mechanism of deception. The president’s notoriety has certainly given particular visibility to the LIBRA crypto. But this influence does not, in itself, constitute proof of fraud.
The file nevertheless contained several disturbing elements. Investigators notably found a note mentioning three payments totaling $5 million. The expertise confirmed its existence on Novelli’s phone, without establishing that it had been transmitted or that the payments had been made. Calls between Milei and Novelli had also been identified. Their content remains unknown. None of these people had been formally questioned as suspects before the dismissal of the case.
Nearly $100 million withdrawn after LIBRA crash
The case dates back to February 14, 2025. That day, Javier Milei published a message on X presenting LIBRA as an initiative intended to support small Argentine businesses.
The crypto, launched on Solana, exploded immediately. Its capitalization exceeded $4.5 billion before collapsing by around 95% in a few hours. Milei then deletes her post and claims to have acted in good faith.
The first blockchain analyzes reveal significant movements. Eight wallets linked to the project team reportedly withdrew nearly $100 million. Investors’ losses also run into the hundreds of millions.
As of February 2025, an on-chain survey identified more than 13,000 losing traders, for around $251 million in losses. Later court documents suggest more than 40,000 people suffered losses. The two figures come from different scopes of analysis.
The judge does not dispute the extent of the damage. However, he considers that a collapse in prices and the enrichment of certain actors are not enough to demonstrate a fraud. Investigators had to identify a specific deception that directly led buyers to invest. This proof was not established in the criminal case.
Crypto investors can still revive the deal
The dismissal represents an important legal victory for Milei. The Argentine president quickly welcomed the decision, denouncing a political and media operation intended, according to him, to weaken his government.
The opposition does not share this reading. Maximiliano Ferraro, who headed the parliamentary commission responsible for investigating the LIBRA crypto, accuses the justice system of having organized an operation to protect the people involved.
In November 2025, this commission had already considered the promotion of LIBRA as a suspected fraud. The contrast is important. Parliament had retained a political responsibility for the president. The criminal judge now considers that the available evidence does not establish an offense.
Another element further complicates the matter. In July, five investors who were plaintiffs were excluded from the procedure. This decision was confirmed on appeal on September 4, the magistrates considering in particular that the buyers had voluntarily accepted the risks of this type of investment. The excluded investors have since appealed to the Federal Court of Criminal Cassation to request their reinstatement.
If they succeed, they could challenge the dismissal pronounced on October 23. For the moment, the prosecutor does not seem willing to appeal, while no complaining party has yet been admitted to the procedure. Javier Milei therefore emerges greatly strengthened from this legal decision. But for injured investors, the losses remain very real. And in this matter, Bitcoin has nothing to do with it.
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