Argentine Judge Dismisses LIBRA Criminal Case Against Javier Milei and 10 Others

Argentine Court Clears Javier Milei in LIBRA Token Probe

An Argentine federal investigation into the launch and public promotion of the Solana-based token LIBRA has concluded with a full dismissal of criminal fraud and corruption allegations against President Javier Milei. The inquiry scrutinized Milei’s promotion of the cryptocurrency on X on Feb. 14, 2025, which was presented as an initiative within a private project intended to finance Argentine businesses. Following the social media endorsement, the market price of LIBRA experienced a rapid surge before suffering a steep collapse, triggering legal complaints from aggrieved participants who alleged fraud, abuse of authority, and corrupt practices.

Judge Marcelo Martínez de Giorgi dismissed the case pursuant to Article 336(3) of Argentina’s criminal procedure code, a statutory provision applied when the underlying acts alleged do not legally constitute a criminal offense. The judicial action was formally executed as a dismissal, or sobreseimiento, establishing a definitive resolution rather than an administrative shelving or temporary suspension of the investigation. The ruling definitively clears the 11 named individuals targeted in the inquiry and directs that the case files be formally archived once the judgment becomes final.

Judicial Assessment of Fraud and Official Misconduct

In analyzing the criminal fraud claims, Judge Martínez de Giorgi determined that Milei’s public endorsement, the subsequent surge in market value, and the eventual token collapse did not satisfy the legal elements of criminal fraud. The court acknowledged that while the president’s promotion likely heightened the project’s profile and bolstered investor confidence, the evidentiary record failed to demonstrate a legally relevant deception directly responsible for inducing investors to commit their funds. Consequently, market volatility following presidential visibility was not deemed sufficient to establish criminal liability.

The Argentine judiciary also dismissed corruption and public-office allegations linked to the executive branch. The court concluded that no official state actions were tied to the private crypto venture, precluding charges of abuse of authority. Furthermore, the court found no evidence to substantiate claims that Karina Milei engaged in an illicit exchange or received improper compensation to exert influence over a public official in connection with the LIBRA project.

Parallel U.S. Civil Litigation Terminated With Prejudice

Concurrent legal challenges surrounding the project have faced similar roadblocks in the United States. In a ruling issued on Sept. 29, U.S. District Judge Jennifer L. Rochon dismissed an investor complaint with prejudice and denied the plaintiffs permission to file a second amended complaint. The dismissal terminated the litigation across various defendants and causes of action: racketeering claims brought against the Kelsier defendants were dismissed for failure to state a claim, while remaining counts against them were tossed due to a lack of personal jurisdiction. Additionally, claims against Chow and Meteora were dismissed for failure to state a claim.

The civil proceedings in the U.S. also altered the status of millions in digital assets associated with the venture. The Defiant reported in May 2025 that stablecoin issuer Circle had frozen nearly $58 million in LIBRA-linked $USDC. However, an order issued by Judge Rochon on Aug. 19, 2025, dissolved the temporary restraining order that had placed a hold on those funds and denied an investor request for a preliminary injunction that would have extended the freeze.

The Argentine ruling also noted an international legal request seeking U.S. assistance to freeze approximately 44.6 million $USDC. However, the ruling issued by Judge Martínez de Giorgi does not direct any distribution of those assets to impacted investors, focusing instead on terminating the criminal exposure of the individuals involved.

Why This Matters

The coordinated legal resolutions in both Argentina and the United States emphasize the high legal standard required to convert high-profile cryptocurrency promotions and subsequent market downturns into actionable criminal fraud or civil racketeering offenses. By distinguishing between social media-driven visibility and deliberate, criminal deception, the rulings limit the legal exposure of public officials endorsing decentralized finance assets without official state backing. The decisions also remove immediate court-ordered distribution pathways for tens of millions of dollars in frozen USDC, demonstrating the complexities investors face when seeking restitution across international jurisdictions following speculative token failures.

Frequently Asked Questions

Why was the criminal case against Javier Milei dismissed in Argentina?

Judge Marcelo Martínez de Giorgi dismissed the case under Article 336(3) of the criminal procedure code, ruling that the allegations did not constitute a criminal offense. The court established that Milei’s endorsement and the subsequent price collapse did not amount to legally deceptive fraud, and no official acts or illicit influence by Karina Milei were substantiated.

What is the status of the LIBRA lawsuit in the United States?

U.S. District Judge Jennifer L. Rochon dismissed the investor lawsuit with prejudice on Sept. 29 and denied plaintiffs leave to amend their complaint. The court found jurisdictional defects and failures to state viable claims against the Kelsier defendants, Chow, and Meteora.

What happened to the frozen USDC associated with the project?

Circle previously froze nearly $58 million in LIBRA-linked $USDC, and Argentine records reference a request to freeze approximately 44.6 million $USDC. However, Judge Rochon dissolved the U.S. temporary restraining order and denied a preliminary injunction, while the Argentine court dismissed the case without ordering any asset distribution to investors.