Argentina’s LIBRA crypto scandal has taken a major turn after a federal judge dismissed the criminal investigation into President Javier Milei, his sister Karina Milei, and US businessman Hayden Davis.
The October 23 ruling closes the case despite reported investor losses exceeding $200 million and questions over funds linked to Davis.
Judge Says LIBRA Crash Does Not Prove Criminal Fraud
Federal Judge Marcelo Martinez de Giorgi issued the decision in a 60-page ruling after prosecutor Eduardo Taiano recommended closing the investigation. The case examined whether Milei’s promotion of the LIBRA token involved fraud, abuse of authority, or misuse of public resources.
According to the ruling, the reported events did not meet the legal standard for a criminal offense. The judge concluded that investor losses and sharp price movements alone were not enough to establish fraud.
The investigation began after Milei promoted LIBRA on X in February 2025, saying the project would support small businesses. His post helped draw attention to the token before its price collapsed.
The judge acknowledged that Milei’s position as president could have given the launch greater impact, but said his actions alone did not establish a fraudulent scheme.
Karina Milei and Hayden Davis Also Cleared
The ruling also closed the investigation into Karina Milei, the president’s chief of staff. The judge said that investigators found no evidence that she received payments to arrange meetings between her brother and the token’s creators.
Meanwhile, the judge said facilitating contact alone did not establish influence peddling.
US businessman Hayden Davis, who advised the token’s launch, was also cleared in the case. Davis has denied wrongdoing, and the judge found insufficient evidence of criminal collusion between him and Argentina’s government.
Following the decision, Argentina’s presidential office declared on X that the investigation had provided “absolute proof of his innocence.”
Background of LIBRA Scandal
The LIBRA scandal, also known as “Cryptogate,” began in 2025 after Argentine President Javier Milei promoted a cryptocurrency called LIBRA on X, stating that,
“The world wants to invest in Argentina. LIBRA.”
Within hours, Milei deleted the post and distanced himself from the project. The token’s price then crashed, causing investors to lose an estimated $100 million to $251 million.
Critics had described the episode as a possible rug pull, while the court’s ruling did not establish criminal liability.
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