Quick answer: The Milei LIBRA case is closed at first instance. On Oct. 23, 2026, Argentine federal judge Marcelo Martínez de Giorgi dismissed fraud charges against President Javier Milei, Karina Milei and nine others, ruling the token’s 2025 crash \”does not fall under a legal category\” of crime, per BBC and Infobae.
Argentina has closed the criminal investigation into the most famous political memecoin of the cycle. Without calling a single defendant for questioning, a federal judge cleared President Javier Milei, his sister Karina and nine others over the $LIBRA token that soared and then collapsed in February 2025.
The ruling matters far beyond Buenos Aires. In effect, it says that promoting a token that later crashes is not, by itself, a crime. That is a line many memecoin buyers and promoters will now cite.
What did the judge decide in the Milei LIBRA case?
On Friday, Oct. 23, 2026, Federal Judge Marcelo Martínez de Giorgi issued a sobreseimiento, a full dismissal, in the Milei LIBRA case. According to Infobae, he acted on a request from prosecutor Eduardo Taiano and found that the events “do not fit a legal category” of crime.
The decision cleared 11 people: Javier Milei, Karina Milei, traders Mauricio Novelli, Manuel Terrones Godoy and Sergio Morales, token creator Hayden Davis, Julian Peh, María Pía Novelli, María Alicia Rafaele, Camilo Rodríguez Blanco and Orlando Mellino. Montegre reports the decision runs about 60 pages. It rests on Article 336 of Argentina’s criminal procedure code, which allows dismissal when the facts do not amount to a crime.
The BBC quotes the judge as concluding that no “criminally relevant” deception was shown. Perfil adds that the ruling states the case “does not affect the good name and honor” of the defendants.
Why did the court say a memecoin crash is not fraud?
The core of the reasoning is about proof, not price. Per Infobae, the judge said fraud needs a concrete deceptive act, a mistake induced in buyers and a loss caused directly by that deception. The investigation did not find “a specific false statement” that led people to buy $LIBRA.
He also described memecoins as a market of “high volatility” and wrote that an economic loss does not, on its own, equal a crime. On abuse-of-office charges, he relied on Argentina’s Anti-Corruption Office. That office found the post came from Milei’s personal X account, with no public resources or official channels involved.
For Karina Milei, the Buenos Aires Times quotes the ruling: “Facilitating a contact or helping to organise a meeting does not, in itself, amount to influence peddling.”
What happened with LIBRA in February 2025?
On Feb. 14, 2025, Milei posted on X about the “Viva la Libertad Project,” presenting it as a private plan to fund Argentine businesses. Montegre reports he shared the token’s contract address on the Solana network. The price rose from about $0.01 to nearly $5 within hours, then collapsed.
Complainants estimated that a few wallets withdrew around $100 million and that more than 40,000 buyers lost money. Milei later said he acted in good faith and did not know the project’s details. The probe included raids, device seizures and on-chain tracing, plus a request for help from the United States.
Is the LIBRA case fully closed now?
Not completely. On July 3, 2026, the judge removed the investor complainants from the case. The Federal Chamber’s Sala I confirmed that on Sept. 4, 2026. Five investors then appealed to the Federal Court of Cassation on Sept. 17, according to LU17.
La Política Online reports that Cassation’s Sala II still has to rule on that appeal. If the investors win back their standing, they could appeal the dismissal. Perfil, by contrast, expects the ruling to become final within days, since the prosecutor asked for it and no complainants remain.
The outside track has also gone quiet. Perfil says the ruling notes that the US Justice Department closed Argentina’s assistance request. It also cites a New York federal court’s dismissal of a civil suit against Kelsier Labs, which in Davis’s case was for lack of jurisdiction. Milei celebrated the decision with a quote attributed to Epictetus: “Truth always triumphs by itself; lies always need accomplices.”
What does the ruling mean for memecoin traders?
- Weak legal backstop. Courts may treat losses on hyped tokens as market risk, not crime, unless buyers can point to a specific false claim. Treat every celebrity or politician’s token post as marketing.
- Insider supply is the real risk. The LIBRA story centered on a few wallets cashing out about $100 million. Check token distribution and liquidity locks before buying any launch.
- Regulators elsewhere are moving differently. US authorities are targeting crypto fraud more directly, as our report on the $833 million scam crackdown shows. Launch platforms keep adding riskier products, such as Pump.fun’s 40x perps.
For the wider market, the dismissal removes a long-running political overhang in Argentina ahead of a busy news week. It does not change the basic memecoin math. Most new tokens still lose value fast, and early insiders usually hold the edge.
Milei LIBRA Case FAQ
Was Javier Milei found innocent in the LIBRA case?
He was dismissed, not tried. On Oct. 23, 2026, Judge Marcelo Martínez de Giorgi ruled that the reported facts do not amount to a crime and closed the case before any defendant was questioned, per Infobae and Perfil.
Who else was cleared in the $LIBRA case?
Ten others: Karina Milei, Mauricio Novelli, Manuel Terrones Godoy, Sergio Morales, Hayden Davis, Julian Peh, María Pía Novelli, María Alicia Rafaele, Camilo Rodríguez Blanco and Orlando Mellino, according to Infobae.
How much money did LIBRA investors lose?
Complainants estimated that a small group of wallets withdrew around $100 million and that more than 40,000 buyers lost money after the Feb. 14, 2025 crash, per Montegre’s summary of the ruling.
Can the LIBRA dismissal be appealed?
The prosecutor requested it, so he is not expected to appeal. Five excluded investors have a pending appeal at the Federal Court of Cassation. If they regain standing, they could challenge the dismissal, La Política Online reports.
Not financial advice. Crypto assets are volatile; do your own research (DYOR) before you trade.
Sources
- BBC: Argentina drops investigation into Milei over crypto fraud
- Infobae: La Justicia sobreseyó al presidente Javier Milei y a su hermana Karina en la causa $LIBRA
- Buenos Aires Times: Court clears Milei siblings in $LIBRA cryptocurrency case
- Montegre: Argentine judge dismisses crypto fraud case against President Milei
- Perfil: Las claves del fallo que sobreseyó a Javier y Karina Milei
- La Política Online: La causa Libra aún no está cerrada
- LU17: Criptoestafados apelan a Casación
- AP News (Spanish): Justicia argentina cierra investigación contra Milei
