Judge Dismisses Criminal Probe into President Milei Over LIBRA Crypto Scandal
An Argentine federal judge has dismissed the criminal investigation into President Javier Milei, his sister Karina Milei, and U.S. businessman Hayden Davis concerning the LIBRA cryptocurrency scandal. The ruling, issued on October 23, closes the case despite reported investor losses exceeding $200 million and questions surrounding funds linked to Davis.
Federal Judge Marcelo Martinez de Giorgi delivered the decision in a 60-page ruling, following a recommendation from prosecutor Eduardo Taiano to end the investigation. The probe had examined whether Milei’s promotion of the LIBRA token constituted fraud, abuse of authority, or misuse of public resources.
The judge concluded that the events under scrutiny did not meet the legal threshold for a criminal offense. According to the ruling, investor losses and significant price fluctuations alone were insufficient to prove fraud.
The investigation was initiated after Milei promoted LIBRA on X in February 2025, suggesting the project would benefit small businesses. His post reportedly drew attention to the token before its value plummeted. While the judge acknowledged that Milei’s presidential position might have amplified the launch’s impact, his actions alone were deemed insufficient to establish a fraudulent scheme.
The investigation into Karina Milei, the president’s chief of staff, was also closed. The judge stated that investigators found no evidence she received payments for arranging meetings between her brother and the token’s creators. Facilitating contact, the judge noted, did not in itself constitute influence peddling.
U.S. businessman Hayden Davis, who advised on the token’s launch, was also cleared. Davis has denied any wrongdoing, and the judge found insufficient evidence of criminal collusion between him and the Argentine government.
Following the ruling, Argentina’s presidential office declared on X that the investigation had provided “absolute proof of his innocence.”
The LIBRA scandal, also referred to as “Cryptogate,” emerged in 2025 after President Milei promoted the cryptocurrency on X with the statement, “The world wants to invest in Argentina. LIBRA.” Within hours, Milei deleted the post and disassociated himself from the project. The token’s price subsequently collapsed, leading to estimated investor losses ranging from $100 million to $251 million. Critics had suggested the episode could have been a “rug pull,” but the court’s ruling did not establish criminal liability.
