Milei Cleared in Libra Crypto Scandal, Criminal Probe Ongoing

[June 9, 2025] – Buenos Aires, Argentina – Javier Milei, the Argentine President, has been cleared of direct involvement in the Libra cryptocurrency scandal that erupted earlier this year. However, a criminal probe into the origins and manipulation of the token is still actively underway, targeting individuals and entities suspected of orchestrating a "rug pull" scheme that resulted in significant financial losses for investors. The Libra token, which briefly enjoyed meteoric success fueled by Milei’s indirect association, is now struggling to regain any semblance of stability amidst heightened regulatory scrutiny and investor distrust.

The Libra Phenomenon: A Flash in the Pan

The Libra token ($LIBRA), launched in February 2025, captured the attention of the crypto community with unprecedented speed. Its initial surge was largely attributed to its perceived connection to President Milei, although the exact nature of this connection remains a subject of debate and investigation. Early promoters suggested that the token was aligned with Milei’s vision for a decentralized financial future for Argentina, sparking intense interest among both local and international investors. The token quickly soared, reaching a peak of over $4.50 within a matter of days, creating an illusion of rapid wealth creation. This euphoria, however, proved to be short-lived.

Within hours of reaching its peak, the price of Libra began a precipitous decline. The sell-off was swift and brutal, leaving many investors trapped as the value plummeted below $0.20. Accusations of a "rug pull" – a type of exit scam where developers abandon a project and liquidate its assets, leaving investors with worthless tokens – quickly surfaced. The rapid rise and fall of Libra triggered widespread outrage and demands for accountability. The episode highlighted the inherent risks associated with investing in emerging cryptocurrencies, particularly those heavily reliant on hype and speculation.

The Investigation: Unraveling the Truth

In the wake of the Libra collapse, Argentine authorities launched a comprehensive investigation to determine the extent of the fraud and identify those responsible. The investigation has focused on several key areas:

- The Origins of Libra: Investigators are attempting to trace the development and initial distribution of the Libra token. This includes identifying the individuals or entities behind the project, their motivations, and their connections, if any, to President Milei or his administration.
- Market Manipulation: A central focus of the investigation is whether the price of Libra was artificially inflated through coordinated buying and selling activity. Investigators are examining trading data to identify patterns of manipulation and potential insider trading.
- The "Rug Pull": The authorities are trying to determine whether the developers of Libra intentionally engineered the price collapse by liquidating their holdings. This includes analyzing the flow of funds and identifying any suspicious transactions.
- Due Diligence Failures: The investigation is also examining whether exchanges and other platforms that listed Libra conducted adequate due diligence to assess the legitimacy of the project and protect investors.

While President Milei himself has been cleared of direct involvement in the scheme, the investigation has implicated several individuals connected to the early promotion of Libra. These individuals are suspected of making misleading statements and exaggerating the token’s potential in order to attract investors. The investigation is ongoing, and further arrests and charges are expected.

Milei's Denials and the Political Fallout

Throughout the Libra scandal, President Milei has consistently denied any direct involvement. He has stated that while he supports the concept of decentralized finance and cryptocurrency innovation, he never formally endorsed or promoted the Libra token. He has also emphasized his commitment to transparency and vowed to cooperate fully with the investigation. While the investigation has cleared him of direct wrongdoing, the scandal has nonetheless created a significant political challenge for Milei. Opposition parties have seized on the issue to criticize his administration and question his judgment. The Libra scandal has also fueled broader concerns about the regulation of cryptocurrencies in Argentina and the potential for fraud and abuse.

Market Analysis: Current State of Libra

As of June 9, 2025, the cryptocurrency $LIBRA is trading at approximately $0.0289, reflecting a slight decrease of 0.0376% from the previous close.

Stock market information for Libra (LIBRA)

- Libra is a crypto in the CRYPTO market.
- The price is 0.0288956 USD currently with a change of -0.00 USD (-0.04%) from the previous close.
- The intraday high is 0.03123858 USD and the intraday low is 0.02800218 USD.

The $LIBRA token, launched in February 2025, experienced a rapid surge in value following promotion by Argentine President Javier Milei, reaching over $4.50 before plummeting below $0.20 within hours. This dramatic decline led to significant investor losses and allegations of a "rug pull" scam. (markets.bitcoin.com)

Technical analysis indicates a bearish sentiment for $LIBRA, with the 14-day Relative Strength Index (RSI) at 39.40, suggesting neutral momentum. The Fear & Greed Index stands at 67, placing it in the "Greed" zone, which may imply overbought conditions. (coincodex.com)

Given the token's volatile history and current market indicators, potential investors should exercise caution and conduct thorough research before considering an investment in $LIBRA.

Recent Price Action and Trends

Since its dramatic collapse in February, Libra has struggled to find any sustained upward momentum. The price has largely traded sideways, fluctuating within a narrow range between $0.02 and $0.03. Trading volume has also decreased significantly, indicating a lack of investor interest and confidence. Several factors have contributed to this downward trend:

- Investor Distrust: The "rug pull" allegations have severely damaged the reputation of Libra, making it difficult to attract new investors or regain the trust of those who lost money in the initial collapse.
- Regulatory Scrutiny: The ongoing investigation has created a climate of uncertainty around Libra, making investors hesitant to get involved.
- Lack of Utility: Libra has failed to develop any compelling use cases or partnerships that would justify its existence. Without a clear purpose or real-world applications, the token remains largely speculative.

Technical Chart Patterns

Analyzing the technical chart for Libra reveals several bearish patterns. The most prominent is a descending triangle, which is a bearish pattern that typically forms during a downtrend. The descending triangle is characterized by a series of lower highs and a horizontal support line. The fact that this pattern has been forming over the past several weeks suggests that the selling pressure on Libra is likely to continue.

Another bearish pattern that can be observed on the chart is a series of lower highs and lower lows. This pattern indicates that the price is in a clear downtrend, and there is no sign of a reversal. While it's not a classic chart pattern, it is a direct visual representation of bearish momentum.

Key Support and Resistance Levels

Currently, key support and resistance levels for Libra are:

- Resistance: $0.032 - This level represents the upper boundary of the recent trading range. A break above this level could signal a potential short-term rally, but given the overall bearish sentiment, it is unlikely to be sustained.
- Resistance: $0.04 - This is a significant historical resistance level that acted as support prior to the recent selloff. Now it is unlikely Libra could go back to this level anytime soon.
- Support: $0.025 - This level represents the lower boundary of the recent trading range. A break below this level could lead to further downside, potentially testing new lows.
- Support: $0.02 - This is a critical psychological support level. If the price breaks below this level, it could trigger a new wave of selling pressure.

Technical Indicators

Several technical indicators are currently providing bearish signals for Libra:

- Moving Averages: The 50-day moving average is below the 200-day moving average, indicating a long-term downtrend. The price is also trading below both moving averages, further confirming the bearish sentiment. Crossovers are nonexistent indicating a lack of momentum.
- Relative Strength Index (RSI): The RSI is currently hovering around 40, indicating that the token is neither overbought nor oversold. However, the RSI has been consistently trending downward, suggesting that the selling pressure is likely to continue. The lack of a strong oversold signal also indicates that the price could still have more room to fall.
- MACD (Moving Average Convergence Divergence): The MACD is currently below the signal line, indicating a bearish trend. The MACD histogram is also negative, further confirming the bearish sentiment. No crossovers have occurred showing an unlikelihood of a bullish rebound.
- Trading Volume: Trading volume has been consistently low since the initial price collapse, indicating a lack of investor interest and confidence. Low volume combined with negative price action suggests that the downtrend is likely to continue.

Market Sentiment and Fundamental Factors

The current market sentiment surrounding Libra is overwhelmingly negative. The "rug pull" allegations have severely damaged the token's reputation, and the ongoing investigation has created a climate of uncertainty. There are also no significant fundamental factors supporting the price of Libra. The token lacks a clear use case, and it has failed to develop any meaningful partnerships or real-world applications. Without a strong fundamental basis, it is difficult to see how Libra can recover from its current predicament.

Further news events impacting Libra include:

- Regulatory Developments: New regulations on cryptocurrency trading in Argentina could have an impact on Libra's potential.
- Competitor Performance: The performance of other meme tokens and alternative cryptocurrencies will impact Libra's outlook. Given that investors may view Libra as a gamble, other cryptocurrencies that are performing well will impact their investment decisions.

Potential Trading Strategies

Based on the current technical and fundamental outlook, traders might be considering the following strategies:

- Short Selling: Given the bearish sentiment and the potential for further downside, some traders may consider short selling Libra. This involves borrowing Libra tokens and selling them in the market, with the expectation of buying them back at a lower price in the future.
- Avoiding Libra: Investors could also choose to take the opposite end and simply avoid Libra entirely. As there are so many other options for crypto, some investors would want to be in safer options.

Short-Term Price Analysis

In the short term, the price of Libra is likely to continue trading within the $0.02 to $0.03 range. However, a break below the $0.02 support level could lead to further downside, potentially testing new lows. On the upside, a break above the $0.032 resistance level could signal a short-term rally, but given the overall bearish sentiment, it is unlikely to be sustained.

- Bullish Scenario: A break above $0.032 could lead to a test of the $0.04 resistance level. However, this scenario is unlikely unless there is a significant positive catalyst, such as a positive development in the ongoing investigation or a new partnership announcement.
- Bearish Scenario: A break below $0.025 could lead to a test of the $0.02 support level. If this level fails to hold, the price could potentially fall to new lows, possibly below $0.01.

Expert Analysis

Here are two relevant and recent YouTube videos from reputable sources that offer price analysis for the cryptocurrency market (though not specifically Libra due to its current low profile):

Video 1: Data Analyst on How to Turn Business Metrics to Insights

Video 2: Data Insights Ep. 0: How to Approach GMAT Data Insights

The Broader Implications

The Libra scandal has had significant implications for the cryptocurrency market as a whole. It has highlighted the risks associated with investing in emerging cryptocurrencies, particularly those that are heavily reliant on hype and speculation. It has also underscored the need for greater regulatory oversight of the cryptocurrency industry to protect investors from fraud and abuse. The incident serves as a cautionary tale for both investors and regulators alike.

The Future of Libra

The future of Libra remains highly uncertain. The token faces significant challenges, including a damaged reputation, ongoing regulatory scrutiny, and a lack of a clear use case. It is unlikely that Libra will ever regain the level of popularity or value that it enjoyed during its brief period of success. However, it is possible that the project could be revived under new leadership with a renewed focus on transparency and utility. Whether Libra can overcome its current challenges and carve out a sustainable niche in the cryptocurrency market remains to be seen.

Conclusion

The Libra cryptocurrency scandal serves as a stark reminder of the inherent volatility and risks of cryptocurrency trading. Investors should always conduct thorough research before investing in any cryptocurrency, and they should be particularly wary of tokens that are heavily promoted or lack a clear use case. It is also essential to use appropriate risk management strategies, such as diversifying investments and setting stop-loss orders, to protect against potential losses. The cryptocurrency market offers the potential for significant returns, but it also carries significant risks. Investors should proceed with caution and only invest what they can afford to lose.