Argentina’s decision to drop its criminal investigation into President Javier Milei over the collapse of the LIBRA cryptocurrency token marks a significant development in a controversy that raised questions about political accountability, investor protection, and the influence of public officials in digital asset markets.
The token, which suffered a dramatic 95% price decline, attracted widespread attention after Milei publicly promoted it, prompting allegations that investors may have been exposed to substantial financial risks.
The LIBRA controversy emerged in February 2025, when Milei promoted the cryptocurrency on social media, describing it as a project intended to support economic growth and finance businesses in Argentina.
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His endorsement helped generate intense market interest, with the token’s price surging shortly after the publicity. However, the rally proved short-lived, as LIBRA subsequently plunged by approximately 95%, leaving many investors facing significant losses.
The rapid collapse fueled accusations that the cryptocurrency’s launch and subsequent trading activity may have benefited a limited number of early participants at the expense of later buyers.
Critics questioned whether the token’s promoters had adequately disclosed the risks associated with the project and whether the president’s public endorsement had encouraged ordinary investors to purchase an asset they might otherwise have avoided.
Milei denied wrongdoing, maintaining that he had shared information about a private initiative rather than formally endorsed an investment opportunity.
The controversy generated political pressure and calls for an investigation into his involvement, the token’s promotion, and the circumstances surrounding its dramatic price movement.
On October 23, 2026, federal judge Marcelo Martínez de Giorgi dismissed the criminal investigation following a request from prosecutor Eduardo Taiano. The decision covered Milei, his sister Karina Milei, and other individuals connected to the token’s launch.
The judge concluded that the evidence did not establish criminal fraud, emphasizing that the influence of a prominent political figure does not automatically transform a cryptocurrency promotion into a fraudulent scheme.
The ruling represents a major legal victory for Milei, whose administration had faced criticism over the controversy. However, the dismissal does not erase the financial consequences suffered by investors or establish that LIBRA was a sound investment.
Reports from blockchain researchers indicated that wallets linked to the token’s creator withdrew approximately $99 million in cryptocurrency, intensifying concerns about how the project was structured and how participants benefited from its trading activity.
The investigation also attracted attention because of the involvement of American businessman Hayden Davis, who described himself as an adviser to LIBRA’s launch. Davis acknowledged holding substantial cryptocurrency following the collapse but denied wrongdoing.
The court’s decision extended to him and other individuals investigated in connection with the project, bringing significant relief to those facing potential criminal liability.
Despite the dismissal, questions about investor protection and political responsibility remain relevant. Cryptocurrency markets are particularly vulnerable to sudden price movements when assets depend heavily on social media attention, influential endorsements, and speculative enthusiasm rather than established economic value.
A message from a national leader can attract buyers rapidly, but it cannot guarantee liquidity, transparency, or long-term returns. The case highlights the distinction between criminal liability and ethical responsibility.
Although the judge found insufficient grounds to establish fraud, public officials promoting digital assets must consider how their positions influence market participants. Investors may interpret presidential endorsements as signals of legitimacy, even when no formal guarantee or government backing exists.
There may be further legal developments. Investors previously excluded from participating directly in the proceedings have challenged that decision, potentially creating a route to appeal if they regain standing.
Therefore, the dismissal should not necessarily be interpreted as the final resolution of every dispute connected to LIBRA. Argentina’s decision closes a significant chapter in the LIBRA controversy while leaving broader concerns about cryptocurrency speculation unresolved.
Milei has secured an important legal reprieve, but investors who suffered losses may still seek accountability through other available avenues. The episode serves as a reminder that political influence can move digital asset prices dramatically, while investors remain responsible for assessing risks in markets where transparency and oversight may be limited.