- Argentine judge dismisses the criminal investigation into Milei, his sister, and Davis over LIBRA.
- Judge finds insufficient evidence to establish fraud from Milei’s promotion of the memecoin.
- Davis acknowledged holding nearly $100M after LIBRA’s collapse, with withdrawal links unclear.
An Argentine federal judge dismissed the criminal investigation into President Javier Milei and his sister, Karina Milei, over the LIBRA memecoin’s launch and promotion. The judge found inadequate proof for a criminal fraud case following the token’s rally and collapse after Milei recommended it on X in February 2025.
Federal Judge Marcelo Martinez de Giorgi also dismissed an investigation into U.S. businessman Hayden Davis, who described himself as LIBRA’s launch adviser and denied wrongdoing.
Judge Distinguishes Promotion From Fraud
Martinez de Giorgi acknowledged that Milei’s institutional standing could have given the token’s launch greater impact. However, he wrote that the president’s position and social media promotion did not, by themselves, confirm a fraudulent scheme.
That difference formed the basis of the reported findings on Milei’s involvement. The investigation had examined allegations of fraud surrounding the launch of the cryptocurrency he publicized. Milei later deleted his post and denied having any link to LIBRA. Explaining his actions after the crash, he said he had acted in good faith and had not known the project’s details.
He said he stopped giving the token publicity once he learned more. Meanwhile, he accused political rivals of trying to take advantage of the incident.
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LIBRA Wallet Withdrawals and Investor Questions
The financial activity surrounding the launch fueled further controversy. Blockchain researchers said eight digital wallets linked to LIBRA’s creator withdrew around $99 million worth of cryptocurrency from its marketplace.
Davis separately acknowledged holding close to $100 million after the crash. However, he did not disclose whether his holdings overlapped with the withdrawals identified by researchers.
Argentina’s fintech chamber said the episode could potentially involve a rug pull. It described developers attracting legitimate investment, driving up a token’s value and then selling their stake. That assessment came from the chamber rather than a judicial finding of fraud.
The dismissal closes the criminal investigation into Milei, his sister, and Davis, but questions remain over the large withdrawals linked to LIBRA’s launch and the losses suffered by investors. While the judge found insufficient evidence to establish criminal fraud, the ruling does not erase the financial controversy surrounding the token’s rise and collapse.
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Related: Argentina’s President Javier Milei Shuts Down $LIBRA Memecoin Scandal Investigation
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