Argentina Dismisses Milei Probe as LIBRA Losses Persist
An Argentine federal judge has dismissed the criminal investigation into President Javier Milei, his sister Karina Milei, adviser Hayden Davis and eight others over the LIBRA memecoin promotion. The court said Milei’s post may have amplified the token’s launch, but evidence did not establish fraud, misuse of public office or payments to officials. An unsigned draft proposing a $5 million arrangement was not proof that funds had changed hands. A US judge separately dismissed a class action tied to LIBRA. The Solana-based token briefly reached an estimated $4.6 billion market value before falling more than 90%; cited on-chain data show about 86% of traders lost money, with roughly $251 million in losses across 114,000 wallets. The rulings close key legal actions but do not resolve investor losses or provide a route to compensation. For LIBRA traders, the legal overhang has eased, but the decisions do not change the token’s underlying market risks.
Neutral
The dismissal may modestly reduce a legal overhang around LIBRA and prompt short-term relief buying among traders who had priced in continued litigation. However, the ruling is not an endorsement of the token and does not reverse its collapse. The separate US case dismissal likewise does not restore investor funds or establish compensation. With LIBRA having fallen more than 90% from its estimated peak and reported losses spread across many wallets, market participants may continue to focus on liquidity, trading activity and the risk of further volatility. Over the longer term, closing the cases removes one source of uncertainty, but it does not change the token’s fundamentals or resolve the losses. The likely price effect is therefore limited and mixed rather than clearly bullish or bearish.