Federal judge Marcelo Martínez De Giorgi on Friday, October 23, 2026 dismissed the $LIBRA case against Argentine President Javier Milei, his sister and presidential chief of staff Karina Milei, and nine other defendants, concluding that the facts investigated "do not fit any legal offense", according to the ruling cited by [Infobae](https://www.infobae.com/judiciales/2026/10/23/la-justicia-sobreseyo-al-presidente-javier-milei-y-a-su-hermana-karina-en-la-causa-libra/). The judge followed prosecutor Eduardo Taiano's request and ordered the file closed.
The case investigated Milei's promotion on X of the $LIBRA cryptocurrency on February 14, 2025 and its subsequent crash. None of the defendants was called to testify. Here are the grounds, who was cleared and which appeals remain open.
What the judge ruled in the $LIBRA case
Martínez De Giorgi issued the dismissal (sobreseimiento) under article 336, paragraph 3, of Argentina's National Code of Criminal Procedure, which applies when the facts investigated are not a crime, according to Ámbito. The judge said the prosecutor's request was well founded and that, after investors who had been accepted as private plaintiffs were removed from the case, there was no independent accusation to justify continuing (Infobae).
Who was cleared
| Person | Role according to the investigation |
|---|---|
| Javier Milei | President of Argentina; posted the message about $LIBRA |
| Karina Milei | Secretary General of the Presidency |
| Hayden Davis | U.S. businessman, creator of the cryptocurrency |
| Mauricio Novelli | Trader and businessman close to the president |
| Manuel Terrones Godoy | Trader, Novelli's partner |
| Sergio Daniel Morales | Trader |
| Julian Peh (Chyi Haur Peh) | Defendant in the case |
| María Alicia Rafaele | Defendant in the case |
| María Pía Novelli | Defendant in the case |
| Camilo Rodríguez Blanco | Defendant in the case |
| Orlando Mellino | Defendant in the case |
Sources: Infobae and Ámbito. Roles are as described by those outlets; for several defendants they do not detail their involvement.
Timeline of the $LIBRA case
| Date | Event |
|---|---|
| July 2024 | Hayden Davis and Bartosz Lipinski enter the Casa Rosada with an authorization linked to Karina Milei, according to the ruling |
| February 14, 2025 | Milei posts on X a message presenting the Viva la Libertad project; $LIBRA soars and crashes hours later |
| 2025-2026 | Raids, phone forensics and tracing of wallets on the Solana network |
| September 2026 | A New York federal court dismisses a civil lawsuit against Kelsier Labs and others linked to the token |
| Before the ruling | The investor plaintiffs are removed from the case and prosecutor Taiano asks for dismissal |
| October 23, 2026 | Judge Martínez De Giorgi clears all 11 defendants and closes the file |
Sources: Infobae and Ámbito. According to the complaint, the token went from about one US cent to nearly five dollars before collapsing; wallets linked to its promoters allegedly withdrew about US$100 million and more than 40,000 buyers lost money. Investigators sought to freeze 44,593,888 USDC at an address that received funds from wallets labeled "LIBRA: TEAM WALLET" (Ámbito).
The ruling's arguments
| Offense examined | Defendants | Ruling's conclusion |
|---|---|---|
| Fraud | All | No specific deception that led people to buy was identified |
| Abuse of authority | Javier Milei | The post was not an official act |
| Conflict of interest in public office | Javier Milei | There was no state contract or operation |
| Influence peddling | Karina Milei | It was not proven that she received money or gifts |
Why there was no fraud
The judge agreed with the prosecution that the sequence of promotion, rise and fall is not enough to establish fraud. That required proving "a specific deceptive maneuver, an error induced in buyers and financial harm directly caused by that deception", and the investigation did not identify "a specific false statement" that led people to buy (Infobae). "The notoriety of whoever promotes an asset (...) is not, by itself, a fraudulent scheme," the ruling adds, as cited by Ámbito.
Why there was no abuse of authority
The ruling rejected abuse of authority and conflict of interest because it was not proven that promoting $LIBRA was an official act or that there was "a resolution, an administrative order or a state intervention" linked to the project. It took into account an opinion by the Anti-Corruption Office that the post came from a personal account without public resources (Infobae).
Why influence peddling by Karina Milei was ruled out
Forensics on Mauricio Novelli's phone found an unsigned draft agreement and a note in the phone's notes app referring to a "final agreement" with someone identified as "H", allegedly Davis, and to payments to the Milei siblings. The judge concluded it could not be proven that the note was sent to anyone or accepted, and that an unsigned document has no documentary value. The only direct record involving Karina Milei, the authorization for Davis to enter the Casa Rosada, "does not by itself prove" an illicit agreement (Infobae).
Reactions
Milei celebrated the decision: "Justice put things back in their place and the huge political and media operation was exposed," he said in a message released by the government, and in another statement cited by Ámbito he said "they tried a coup and failed". Outlets such as Urgente24 recalled that in July the government appointed Martínez De Giorgi's wife as a federal judge. The ruling does not address that point.
What can happen now in the $LIBRA case
The prosecutor asked for the dismissal, so an appeal from his office is not expected. The investors removed as plaintiffs have pending complaints before the Federal Court of Criminal Cassation, according to Infobae; if the court restored their standing, they could challenge the ruling. For now, the case is closed. It may weigh on the campaign: see Argentina's 2027 presidential election and our profile of Javier Milei.
Frequently asked questions
What is the $LIBRA case?
The criminal case over Javier Milei's promotion on X of the $LIBRA cryptocurrency on February 14, 2025 and its subsequent crash, which left thousands of buyers with losses.
Who dismissed the case against Milei?
Federal judge Marcelo Martínez De Giorgi, on October 23, 2026, at the request of prosecutor Eduardo Taiano.
What does the dismissal mean?
The judge closed the case against the defendants because he found the facts were not a crime. It is final unless an appeal succeeds.
Were the Mileis questioned?
No. None of the 11 defendants was called to give a statement as a suspect.
Can the ruling be appealed?
The prosecutor is not expected to appeal since he requested the dismissal. Investors removed as plaintiffs have pending complaints before the Federal Court of Cassation.
