13h05 ▪ 5 min read ▪ by Evans S.
Summarize this article with:
The Argentine judiciary has just cleared Javier Milei in the LIBRA crypto scandal. On October 23, federal judge Marcelo Martínez de Giorgi pronounced a dismissal in favor of the president, his sister Karina, and nine other people. After 20 months of investigation, the magistrate considers that no criminal fraud was established. An unexpected decision in a case marked by a 95% token crash and nearly 100 million dollars withdrawn by a few wallets.
In Brief
- Javier Milei and ten other people benefit from a dismissal in the LIBRA crypto case.
- The judge considers that promoting the token is not enough to establish fraud.
- Investors are still seeking to obtain the right to challenge the decision.
The judiciary clears Milei in the LIBRA crypto scandal
The case has just experienced a major turnaround. On Friday, October 23, Marcelo Martínez de Giorgi issued a 60-page ruling ending, at this stage, the criminal proceedings against eleven people involved in the LIBRA case.
In May 2025, the Argentine judiciary had nevertheless lifted the banking secrecy on Javier Milei’s accounts. Investigators were then seeking to determine if the president or his associates had financially benefited from the token launch.
The judge 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 gathered elements demonstrate no criminally punishable deception mechanism. The president’s notoriety certainly gave LIBRA particular visibility. But this influence alone does not constitute proof of fraud.
The case contained several troubling elements. Investigators had notably found a note mentioning three payments totaling 5 million dollars. The expert examination confirmed its existence on Novelli’s phone, without establishing that it was transmitted or that payments were made. Calls between Milei and Novelli were also identified. Their content remains unknown. None of these persons had been formally interrogated as suspects before the dismissal.
Nearly 100 million $ withdrawn after the LIBRA crash
The case dates back to February 14, 2025. That day, Javier Milei posted a message on X presenting LIBRA as an initiative intended to support small Argentine businesses.
The crypto, launched on Solana, immediately exploded. Its capitalization exceeded 4.5 billion dollars before crashing about 95% in a few hours. Milei then deleted his post and claimed to have acted in good faith.
Initial blockchain analyses revealed significant movements. Eight wallets linked to the project team reportedly withdrew nearly 100 million dollars. Investor losses also amount to hundreds of millions.
As early as February 2025, an on-chain investigation counted more than 13,000 losing traders, for approximately 251 million dollars in losses. Later court documents mentioned over 40,000 people having suffered losses. The two figures come from different scopes of analysis.
The judge does not dispute the extent of the damage. He considers, however, that a price crash and the enrichment of some actors are not enough to prove fraud. Investigators needed to identify a specific deception directly leading buyers to invest. This evidence was not established in the criminal file.
Crypto investors can still reopen the case
The dismissal represents an important judicial victory for Milei. The Argentine president quickly welcomed the decision, denouncing a political and media operation aimed, according to him, at weakening his government.
The opposition does not share this interpretation. Maximiliano Ferraro, who headed the parliamentary commission tasked with investigating LIBRA, accuses the judiciary of having organized an operation to protect those involved.
In November 2025, this commission had already considered the promotion of LIBRA as an alleged fraud. The contrast is significant. Parliament had retained political responsibility of the president. The criminal judge now considers that the available evidence does not allow establishing an offense.
Another element further complicates the case. In July, five investors who had formed plaintiffs were excluded from the procedure. This decision was confirmed on appeal on September 4, with magistrates notably stating that buyers had voluntarily accepted the risks of this type of investment. The excluded investors have since seized the Federal Criminal Court of Cassation to request their reinstatement.
If they win, they could challenge the dismissal pronounced on October 23. For now, the prosecutor does not seem willing to appeal, while no plaintiff party has yet been admitted in the procedure. Javier Milei therefore comes out much strengthened from this judicial decision. But for the harmed investors, the losses remain real. And in this case, Bitcoin is not to blame.
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Evans S.
Fascinated by Bitcoin since 2017, Evariste has continuously researched the subject. While his initial interest was in trading, he now actively seeks to understand all advances centered on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the sector as a whole.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.