LIBRA memecoin case dismissed: Milei cleared

An Argentine judge dismissed the LIBRA memecoin fraud case against Javier Milei and 10 others, finding no proof of deception despite over $250 million in losses.

A criminal fraud case tied to the LIBRA memecoin has collapsed in Argentina, with a federal judge clearing President Javier Milei and ten other people. The LIBRA memecoin case dismissed this week closes a chapter that began with a February 2025 social media post and ended with more than $250 million in investor wealth wiped out. Here is what the ruling actually says, why it matters for memecoin traders, and what could still change.

What happened in the LIBRA memecoin case dismissed

Judge Marcelo Martínez de Giorgi threw out the case against eleven individuals, according to the research notes. The group included Milei, his sister Karina Milei — who serves as the presidency's secretary general — and U.S. businessman Hayden Davis, who has described himself as an adviser to the token's launch.

Also cleared were lobbyist Mauricio Novelli and KIP Protocol CEO Julian Peh. Notably, none of the eleven had been formally questioned during the proceedings, which gives a sense of how little evidentiary ground the case had reached before it was closed.

The core reasoning is narrow. The judge accepted that Milei's endorsement may have amplified the token's reach, but held that the post itself and the subsequent price collapse were not enough to prove fraud without evidence of a specific deception. He also found nothing showing Karina Milei solicited or received money for access to the president, or that LIBRA proceeds flowed to public officials.

Why it matters

The timeline explains the anger behind the case. On Feb. 14, 2025, Milei promoted LIBRA on X, describing the Solana-based token as a way to fund small businesses in Argentina. The token then lost more than 90% of its value, destroying over $250 million in investor wealth.

Blockchain researchers traced eight wallets linked to the token's creator that withdrew around $99 million in crypto. Davis said he held close to $100 million after the crash and denied wrongdoing, including any payments to Milei or his sister. Milei deleted his post, denied ties to LIBRA, and said he acted in good faith before withdrawing support once he learned more.

For holders, the takeaway is uncomfortable but useful: a public figure's promotion does not create a legal duty of accuracy in most jurisdictions. The judge's distinction between hype and provable deception is the same gap that leaves most memecoin buyers without recourse.

Market reaction

There is no clean read-through in prices, because LIBRA is effectively a distressed asset. Solana, the chain LIBRA launched on, trades at $99.80, down 4.56% over 24 hours on $2,230,632,538 in volume and a $58,875,695,396 market cap. That move aligns with broad sentiment rather than this ruling, so treat any link as narrative, not causation.

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Procedural doors are not fully shut. Prosecutor Eduardo Taiano asked for the dismissal and is not expected to appeal, but investors who had joined as plaintiffs were removed in July, a decision upheld on appeal in September. They have challenged that removal at the Federal Criminal Cassation Court.

If those investors are reinstated, they could appeal the dismissal.
Civil claims in other jurisdictions remain a separate route, though the notes do not confirm any.
CoinDesk reported in February 2025 on text messages in which Davis bragged about buying access to the president's inner circle; Davis denies wrongdoing, and the judge found no evidence money reached officials.

The president's office framed the outcome as a prosecutor-requested dismissal because the acts were not a crime, and called the probe an attempt to damage Milei's reputation in an election year. That framing is political; the legal finding is simply that fraud was not established on the available evidence.

FAQ

What is the LIBRA memecoin case dismissed about?

It concerned fraud allegations over LIBRA, a Solana-based token Milei promoted on X on Feb. 14, 2025. After the token lost more than 90% of its value and over $250 million in investor wealth, a probe examined whether the promotion and collapse amounted to fraud. The judge ruled they did not, absent proof of specific deception.

Why did the judge clear Javier Milei and the other ten people?

Judge Martínez de Giorgi found insufficient evidence of fraud. He acknowledged the endorsement may have increased the launch's impact but said a post plus a price collapse is not fraud by itself. He also saw no evidence Karina Milei took money for access or that LIBRA proceeds reached public officials.

How does this affect Solana or memecoin investors?

Legally, it changes little outside Argentina. It reinforces that promotional posts are weak grounds for a fraud claim unless deception can be shown. SOL trades at $99.80, down 4.56% in 24 hours, which reflects wider market conditions rather than this ruling. Investors should weigh endorsement risk, not assume legal protection.

Market snapshot

Prices at the time of writing (Oct 24, 2026 15:10 UTC).

Solana (SOL): $99.80 — 24h -4.56%

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LIBRA Memecoin Case Dismissed: Milei Cleared of Fraud