Drops

LIBRA

Meteora

<h1 id="span-style-font-weight-400-tldr-span">TLDR:</h1>
<ul>
 <li style="font-weight: 400">The LIBRA scandal criminal case against Javier Milei, Karina Milei, Hayden Davis, and eight others was dismissed after the judge found no offense established.</li>
 <li style="font-weight: 400">Judge Marcelo Martínez de Giorgi ruled that a token price collapse and investor losses, without a provable deceptive act, did not establish criminal fraud.</li>
 <li style="font-weight: 400">Investigators found no proof that Karina Milei received payment for arranging access to the president, while Hayden Davis was also dismissed from the case.</li>
 <li style="font-weight: 400">Opposition lawmakers criticized the case closure, while disputes over removed investor complainants remain pending before a higher Argentine court.</li>
</ul>
Argentina has dismissed the criminal case behind the LIBRA scandal. The ruling covers President Javier Milei, Karina Milei, Hayden Davis, and eight others.
Federal Judge Marcelo Martínez de Giorgi issued the 60-page ruling on October 23, after prosecutor Eduardo Taiano sought dismissal. The inquiry began in February 2025.
Milei promoted LIBRA on X during its launch, framing it as support for Argentine businesses. The token rallied briefly, then crashed. He later removed his post.
The <a href="https://blockonomi.com/argentine-judge-freezes-25-crypto-wallets-in-libra-fraud-probe/" rel="noopener noreferrer nofollow">case drew scrutiny </a>because Milei was president. Loss estimates vary, with some reports exceeding $200 million. The court found no evidence of fraud.
<h2 id="b-libra-scandal-dismissal-ends-criminal-case-in-argentina-b">LIBRA Scandal Dismissal Ends Criminal Case in Argentina</h2>
The LIBRA scandal investigation examined claims of fraud, influence peddling, abuse of authority, and conflicts involving public office. The judge accepted the prosecutor’s view that the facts did not satisfy the legal elements of those offenses.
<div class="embed-x">
 <blockquote class="twitter-tweet">
 Argentine Judge Drops LIBRA Criminal Probe Against President Milei and Hayden Davis
 According to Reuters, Argentine federal judge Marcelo Martínez de Giorgi has dropped the criminal investigation into President Javier Milei, his sister Karina Milei, and U.S. businessman Hayden… <a href="https://t.co/LxME8TuBuM" rel="noopener noreferrer nofollow">pic.twitter.com/LxME8TuBuM</a>
 — Wu Blockchain (@WuBlockchain) <a href="https://x.com/WuBlockchain/status/2113789557594583391?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">October 24, 2026</a>
 </blockquote>
</div>
The court said neither a price decline nor investor losses alone establish criminal fraud. It found no identified false statement that directly persuaded buyers to acquire LIBRA. The ruling also said public attention surrounding a promoter does not automatically prove a deceptive scheme. It said the investigation failed to show an induced error and direct financial harm arising from such a deception.
For Milei, the judge recognized that his office gave the launch added visibility. Yet the ruling said that institutional influence, by itself, was not evidence of fraud. Investigators did not find that the X post was an official act or used state resources. The court said there was no record of an administrative order or government contract tied to the promotion.
The judge also dismissed the case against Karina Milei, the president’s secretary general. Investigators examined unsigned files recovered from Mauricio Novelli’s phone. They did not establish that she received payment for arranging meetings with the president. The court said the material did not prove a remunerated arrangement or influence peddling.
Davis described himself as a launch adviser and denied wrongdoing. The judge found insufficient evidence of criminal coordination between Davis and government officials. The dismissal also covered Novelli, Manuel Terrones Godoy, Sergio Morales, Julian Peh, María Alicia Rafaele, María Pía Novelli, Camilo Rodríguez Blanco, and Orlando Mellino. The case file was closed.
<h2 id="b-why-the-libra-scandal-ruling-drew-political-criticism-b">Why the LIBRA Scandal Ruling Drew Political Criticism</h2>
Reaction to the LIBRA scandal ruling split sharply along political lines. The presidential office called it proof of Milei’s innocence. Milei described the case as a political and media operation against him.
Opposition lawmakers challenged the closure. Deputy Maximiliano Ferraro <a href="https://coincentral.com/argentina-opposition-launches-investigation-into-libra-crypto-scandal/" rel="noopener noreferrer nofollow">criticized the failure to call the defendants</a> for formal questioning. He also said investigators did not complete measures sought by affected investors.
Those criticisms do not change the court’s ruling. However, challenges over the removal of private complainants from the Argentine proceedings remain before the Federal Criminal Cassation Court. That dispute concerns their participation, not an established reversal of the dismissal.
The LIBRA scandal has also produced litigation outside Argentina. A New York federal court dismissed a separate class action in September involving Kelsier, Davis, former Meteora CEO Benjamin Chow, and Meteora. The case was dismissed on procedural and substantive grounds.
The Argentine decision did not award compensation to token buyers. Nor did it determine a single final investor-loss figure. It concluded only that the evidence gathered did not establish criminal liability under the offenses examined. It did not directly assess the token’s commercial merits.
Earlier reporting described attempts to trace digital assets and obtain records from <a href="https://parameter.io/crypto-money-laundering-ring-dismantled-eight-detained-in-multi-city-colombian-operation/" rel="noopener noreferrer nofollow">cryptocurrency platforms</a>. Some investigative requests were incomplete or produced limited results. Authorities also could not determine the content of certain calls between Milei and Novelli near the launch.
The post <a href="https://blockonomi.com/libra-scandal-case-against-milei-dismissed-by-argentine-judge/" rel="noopener noreferrer nofollow">LIBRA Scandal Case Against Milei Dismissed by Argentine Judge</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.

LIBRA Scandal Case Against Milei Dismissed by Argentine Judge

Table of Contents

Blockonomi

Other articles published on Oct 24, 2026

Join our free newsletter for daily crypto updates!