An Argentine federal judge has dismissed the criminal investigation into President Javier Milei and his sister, Karina Milei, over the collapse of the LIBRA meme coin, ruling that there was insufficient evidence of fraud, according to Reuters.

Federal Judge Marcelo Martínez de Giorgi issued the ruling on Friday after prosecutor Eduardo Taiano requested that the case be dropped. The investigation had examined Milei's role in promoting the cryptocurrency in February 2025. The ruling closes a chapter in a case that examined whether a sitting head of state could face criminal liability for promoting a token to his social media followers.

While the judge acknowledged that Milei's position as president may have amplified interest in LIBRA when he promoted it on X, he concluded that the president's actions did not constitute a fraudulent scheme.

The dismissal also covers US businessman Hayden Davis, who described himself as a launch adviser for LIBRA and acknowledged holding nearly $100 million following the token's collapse. Davis has denied any wrongdoing.

Investigation followed February 2025 token collapse

The probe began after Milei promoted LIBRA in an X post on February 14, 2025. The token's price surged sharply before collapsing hours later, and Milei subsequently deleted the post while denying any direct involvement in the cryptocurrency project.

At the time, he maintained that he had acted in good faith and was unaware of the project's details when he shared the token with his followers.

"I was not aware of the details of the project and once I found out, I decided to not continue giving it publicity," Milei said.

The collapse triggered allegations of market manipulation after blockchain researchers identified approximately $99 million withdrawn from the token's liquidity pools — the pooled funds that allow a token to be bought and sold — through eight wallets linked to its creator.

Argentina's fintech chamber had previously raised concerns that the incident could constitute a rug pull — a practice in which token developers attract investors before withdrawing funds or selling their holdings. Rapid launch-and-collapse cycles of this kind have become a recurring feature of meme coin markets, where new tokens can attract speculative buying within hours of going live.

Those allegations led to a criminal investigation examining potential fraud and the involvement of individuals associated with the token's launch. The court, however, concluded that the evidence did not establish the elements necessary to prove the alleged criminal offenses.

According to EFE, the judge found that the token's price collapse alone was insufficient to establish fraud without evidence of a deceptive act that induced investors to purchase it.

The court also found no evidence that Karina Milei had received payments to arrange meetings between the president and businesspeople connected to the project.

The dismissal extends to other individuals investigated in the case, including Mauricio Novelli and Manuel Terrones Godoy.

The decision closes the criminal proceedings covered by the ruling, although it does not reverse the losses suffered by investors in LIBRA's collapse. With the criminal case resolved, the question of recourse for those losses sits outside the scope of the court's decision.