LIBRA Case Against Milei Dismissed, Challenges Remain
An Argentine federal judge dismissed the criminal case against President Javier Milei and 10 others over the Solana-based LIBRA token, accepting a prosecutor’s request. The investigation followed Milei’s February 2025 promotion of LIBRA as a private project supporting Argentine businesses. The token reportedly reached a $4.56 billion market capitalisation before falling more than 94% in 11 hours.
The judge found insufficient evidence of a specific false statement that induced purchases, fraud or payments to Milei’s sister, Karina. Some investigative work remains incomplete, including checks on funds and documents and efforts to establish the contents of Milei’s calls with Mauricio Novelli. The dismissal is not final: investors are challenging their exclusion from the Argentine proceedings. A separate New York investor class action was dismissed in September, and neither ruling provides compensation to token buyers.
For LIBRA traders, the Argentine dismissal eases immediate legal pressure but does not settle the investor challenge or unanswered questions about the token’s launch and collapse. It does not change the scale of LIBRA’s price decline.
Neutral
The dismissal removes some immediate legal overhang for LIBRA, which could prompt short-term relief among traders sensitive to litigation headlines. However, the ruling does not establish that the token’s launch was free of wrongdoing, is not final, and leaves investor challenges and incomplete investigative questions unresolved. The separate New York dismissal also offers no compensation to buyers. Given LIBRA’s reported collapse of more than 94% within 11 hours, the legal decision alone is unlikely to reverse its price trend or restore confidence. Short-term trading may react to headline-driven volatility, while longer-term performance is likely to depend on liquidity, demand and whether new legal or investigative developments emerge. Overall, the news is neutral for LIBRA’s price rather than a clear catalyst for sustained recovery or further decline.