Argentine judge exonerates Milei and 10 in LIBRA case ruling

An Argentine federal judge has cleared President Javier Milei and ten other co-defendants in a high-profile cryptocurrency fraud case, ruling that the promotion of the LIBRA token did not constitute criminal deception. The 60-page decision marks a significant legal victory for the libertarian president, who faced potential criminal charges following a sharp decline in the value of the project’s token. The court concluded that while the asset’s price dropped, the mere promotion of a digital currency does not automatically establish intent to defraud investors. This ruling effectively dismisses the core claim of the lawsuit, which alleged that Milei and his associates misled the public about the token’s underlying utility and value.

The case gained intense scrutiny after the LIBRA token, which was heavily marketed by the Milei administration in early 2024, saw its price plummet by approximately 90 percent within weeks of its launch. Critics and opposing political figures argued that the promotion was a coordinated pump-and-dump scheme designed to enrich insiders at the expense of retail investors. The legal battle became a proxy war in Argentina’s polarized political landscape, with opponents using the alleged fraud to challenge Milei’s broader economic reforms. The judge’s reasoning focused on the distinction between market volatility and criminal intent, noting that no specific false statements or hidden agendas were proven in the available evidence.

This decision highlights the growing legal uncertainty surrounding the intersection of politics and cryptocurrency. Milei had positioned the LIBRA project as a vehicle for financial inclusion and a symbol of his administration’s embrace of free-market principles. By clearing his name, the court has removed a major legal cloud from his presidency, allowing him to continue implementing his aggressive austerity and deregulation agenda. However, the ruling does not address the financial losses suffered by individual investors, who may still pursue civil litigation to recover damages. The outcome signals that current Argentine law may not yet have clear frameworks for prosecuting political figures in the crypto space.

Looking ahead, the cleared defendants are expected to continue their involvement in the crypto ecosystem, though the reputational damage to the LIBRA project may persist. The case sets a precedent for how future political endorsements of digital assets will be evaluated by the judiciary. It suggests that without concrete evidence of coordinated manipulation or false financial representations, political figures may be insulated from criminal liability for market losses. Stakeholders in Argentina’s volatile financial markets will likely watch closely for any civil lawsuits that may emerge, as the legal definition of fraud in the crypto sector remains an evolving and contested area.