ARGENTINA · COURTS
Key Facts
- —The country Argentina, a large South American producer of grain, oil and gas, is led by President Javier Milei, a libertarian.
- —Why it matters A federal judge has closed the criminal case over the LIBRA cryptocurrency that Milei promoted in 2025, removing a legal cloud over the president and his sister.
- —Why now Judge Marcelo Martínez de Giorgi signed the 60-page ruling on Friday 23 October 2026 after the prosecutor asked for the dismissals.
- —What happened The judge dismissed 11 people, including Milei, his sister Karina Milei and US businessman Hayden Mark Davis, finding that the facts are not a crime.
- —The numbers Complaints say the token rose from about US$0.01 to nearly US$5 before it crashed, that a few wallets took out about US$100 million, and that over 40,000 buyers lost money.
- —What it means for you US investors and crypto holders see a court find no fraud in a presidential token promotion, though appeals remain possible and the allegations were never tested at trial.
- —Still open Whether any complainant will appeal, and whether another judicial inquiry linked to LIBRA, which the ruling mentions, will go ahead.
- —Power Index Argentina ranks 4th of 14 in The Rio Times Latin America Power Index, with 61.2 points (October 2026 edition).
An Argentine federal judge has closed the LIBRA case, dismissing President Javier Milei, his sister Karina Milei and nine other people over a cryptocurrency that collapsed after Milei promoted it in 2025. Judge Marcelo Martínez de Giorgi ruled on Friday 23 October 2026 that the facts under investigation do not amount to a crime.
The ruling matters to US readers because the token was launched by a US businessman, Hayden Mark Davis, and Argentine investigators had asked US authorities for help. It also ends, for now, a criminal inquiry into the president of a country whose bonds and New York-listed shares many US investors hold.
The case began after Milei posted on X at 19:01 on 14 February 2025, promoting the project and sharing the token’s contract address. According to the complaints, the price then rose from about US$0.01 to nearly US$5 before it fell sharply.
What the LIBRA Case Ruling Says
Martínez de Giorgi, who runs Federal Criminal and Correctional Court No. 8, accepted a request by prosecutor Eduardo Taiano to dismiss all 11 suspects. The 60-page ruling rests on article 336, subsection 3, of the national criminal procedure code, which allows dismissal when the facts are not a crime.
Besides the Mileis, the ruling covers Mauricio Novelli and Manuel Terrones Godoy, whom Clarín describes as crypto lobbyists, and Davis, who led the token’s launch. It also covers Sergio Daniel Morales, a former adviser to the securities regulator, Julian Peh, Camilo Rodríguez Blanco, Orlando Mellino and two relatives of Novelli.
The judge added that opening the proceedings does not affect the good name and honour the defendants had enjoyed. The order covers only the proceedings examined by that court and can still be appealed.
Why the Judge Found No Fraud in the LIBRA Case
The judge held that no criminally relevant deception had been shown, which a fraud charge requires. He accepted that Milei’s post may have raised the project’s visibility and buyers’ confidence, but said that alone does not prove a fraudulent scheme.
A price rise, a crash and losses were not enough either, because a concrete falsehood that induced investors to buy had to be shown. Taiano argued that the project really existed, that the token was actually issued, and that trades were public and traceable on the blockchain.
Taiano described memecoins as a highly volatile and speculative market in which the defendants never promised profit or a stable price. Losses alone, he wrote, are not enough by themselves to constitute fraud.
Live Market IntelligenceArgentina — Live Market Board
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Argentina — Live Market Board
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204,011.93
-0.05%
69,889.73
-0.51%
10,717.79
-0.58%
3,017,221
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2,541.57
+0.52%
57,021.19
-0.08%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| MERVAL | 3,017,221 | — | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| USD/ARS | 1,493 | +0.10% | +12.96% | 1,491 | 1,494 | 1,480 | — |
| YPF | 7,810 | +0.26% | +72.84% | 7,790 | 7,850 | 7,600 | 1,763,858 |
| GGAL | 6,980 | -0.78% | +1.82% | 7,035 | 7,115 | 6,920 | 1,564,062 |
| PAMPA | 5,115 | +0.69% | +26.70% | 5,080 | 5,140 | 5,000 | 721,190 |
| TXAR | 747.50 | -2.35% | +18.67% | 765.50 | 770.00 | 742.50 | 771,892 |
| ALUAR | 938.00 | -1.21% | +29.83% | 949.50 | 951.00 | 932.50 | 135,426 |
| TGS | 8,870 | -0.17% | +15.05% | 8,885 | 9,075 | 8,720 | 143,546 |
| CEPU | 2,156 | +1.84% | +28.36% | 2,117 | 2,165 | 2,086 | 404,146 |
| MIRGOR | 1,650 | -1.20% | -92.90% | 1,670 | 1,670 | 1,635 | 20,877 |
| COME | 40.93 | -0.73% | -30.47% | 41.23 | 41.60 | 40.50 | 4,258,884 |
| LOMA NEGRA | 3,130 | +0.08% | +5.80% | 3,128 | 3,205 | 3,090 | 182,992 |
| BYMA | 275.00 | -1.70% | +35.14% | 279.75 | 282.50 | 272.00 | 1,409,575 |
| TELECOM ARG | 4,233 | -0.70% | +55.19% | 4,263 | 4,335 | 4,160 | 31,896 |
| GLOBANT | 38.10 | -2.26% | -49.65% | 38.98 | 38.70 | 36.77 | 793,552 |
| MERCADOLIBRE | 1,870 | -3.59% | -20.71% | 1,940 | 1,927 | 1,870 | 329,640 |
What the Judge Found on Milei and Karina Milei
On abuse of authority and dealings incompatible with public office, the ruling notes the Anti-Corruption Office’s earlier finding that the post was not an institutional act and used no state resources. The court also found no administrative acts tied to the launch and no official document proving a confidential agreement between Milei and Davis.
La Nación reports that the Presidency’s General Secretariat told the prosecutor in a written reply that it held no record of such an agreement. The reply was signed by legal undersecretary Juan Manuel Galli.
For Karina Milei, who is Secretary-General of the Presidency, the judge found no proof that she asked for or received money to arrange meetings between the president and project backers. A note on Novelli’s phone mentioned a payment for Javier and Karina Milei, but forensic work could not show that the offer was passed on or accepted.
Examiners also found two deleted chats with a contact saved as “Karina Milei RRPP” and phone calls with the president, but could not establish what was said. The judge concluded that safe-deposit boxes, bank income and crypto wallets linked to Novelli did not prove improper payments.
The US Side of the Case
Argentine investigators asked US authorities for judicial cooperation to identify the people behind wallets linked to the launch. According to Clarín’s reading of the ruling, the US Justice Department replied that promoting a volatile crypto asset on social media, even with a post by a political figure, did not show that investors were induced by false statements.
A separate civil suit in New York was also dismissed, MDZ reported on 1 October. Judge Jennifer Rochon of the Southern District of New York rejected a fraud and racketeering claim by two investors against Davis and others, finding the alleged facts insufficient, and Milei was not a defendant.
The New York suit sought money for investors, while the Argentine case asked whether crimes were committed, so one ruling does not decide the other. Even so, neither court has so far upheld a claim of fraud over the token.
Who Can Still Challenge the Ruling
In early September the Federal Appeals Chamber confirmed the removal of five private complainants from the case, MDZ reported on 4 September. Judges Mariano Llorens and Pablo Bertuzzi found that none had shown a direct harm caused by a specific deception.
Cadena 3 reports that the file will close unless authorised complainants challenge the decision. Whether any party with standing will appeal is not yet known.
What It Means for You
For US investors in Argentina, the ruling removes one legal risk around the president, but it is not a verdict on every public dispute over LIBRA. Appeals remain possible, and the allegations of lost savings were never tested at trial.
For crypto holders, an Argentine criminal court and a New York civil court have so far rejected fraud claims over a volatile memecoin. That says little about future cases, which will turn on their own facts.
Visitors and residents will see little direct change, but the case sits at the centre of Argentine politics. Our guides Argentina Politics Explained, Who Holds Power in 2026 and Who Dominates Argentina, Elites and Regions Explained show who holds power.
Earlier coverage of the LIBRA affair includes Milei’s Sister Named in Major $Libra Crypto Fraud Lawsuit in New York. Our Buenos Aires expat city guide covers day-to-day life in the capital.
What Is Not Known
The 60-page ruling itself was not available for this article, so the account rests on Argentine outlets that saw it, including La Nación, Clarín, MDZ, Los Andes, Perfil and TN. They agree on the judge, the prosecutor, the 11 names and the legal basis.
It is not known whether any party will appeal, or whether the other judicial inquiry tied to LIBRA, which the ruling mentions, will go ahead. The claims that a few wallets took out about US$100 million and that over 40,000 buyers lost money come from the complaints, not from a court finding.
Presidential adviser Santiago Caputo hailed the ruling on X, Clarín reported. He said critics built a scandal over a non-existent event to harm the president.
No statement from the complainants appeared in the sources reviewed. The dismissal ends this file but does not settle every public controversy over the token.
Frequently Asked Questions
What did the judge decide in the LIBRA case?
Judge Marcelo Martínez de Giorgi dismissed all 11 suspects on Friday 23 October 2026, finding that the facts are not a crime. He accepted the prosecutor’s request, and the ruling can still be appealed.
Who was dismissed in the LIBRA case?
The 11 include President Javier Milei, his sister Karina Milei, US businessman Hayden Mark Davis and the crypto lobbyist Mauricio Novelli. The others are Manuel Terrones Godoy, Sergio Daniel Morales, Julian Peh, Camilo Rodríguez Blanco, Orlando Mellino and two relatives of Novelli.
Why did the judge say there was no fraud?
He found no concrete falsehood that induced investors to buy the token. A presidential post can raise visibility and confidence, he said, but that does not prove a fraudulent scheme.
Can the ruling still be appealed?
Yes, the ruling is open to appeal by authorised complainants. Five private complainants were removed from the case earlier, so it is unclear who will challenge it.
What does the LIBRA ruling mean for US readers?
The token was launched by a US businessman, and a separate civil suit against him in New York was dismissed, MDZ reported on 1 October. Investors in Argentine assets see one legal risk around the president removed, though appeals remain possible.
Sources: La Nación, 23 October 2026; Clarín, 23 October 2026; Cadena 3, 23 October 2026; MDZ, 23 October 2026; Los Andes, 23 October 2026; TN, 23 October 2026; Perfil, 23 October 2026; MDZ, 4 September 2026; MDZ, 1 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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