Despite the ongoing scandal, price predictions for LIBRA remain cautiously optimistic, with some analysts doubting a potential rebound to $0.50 in 2025.

Congressional Inquiry Grips Argentina

Argentina’s Chamber of Deputies voted overwhelmingly on April 9 to establish a special investigative commission to examine the controversial launch and crash of the LIBRA token. The probe follows widespread public backlash after President Javier Milei publicly promoted the coin on February 14, sparking a rapid price surge followed by a catastrophic crash within hours.

Argentina’s Congress is now investigating President Milei over the escalating LIBRA crypto scandal, raising major concerns about transparency and misuse. Source: PROSPEROUS WORLD via X

The token initially soared more than 3,000%, reaching highs above $5, before plummeting by over 90%. It now trades around $0.31 with a market cap of approximately $81.5 million, according to crypto tracking data.

Lawmakers have summoned top government officials—including Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, Chief of Staff Guillermo Francos, and National Securities Commission head Roberto Silva—to testify. They are expected to provide insight into whether state resources or influence were misused in the token’s promotion.

“This is not just about a memecoin. It’s about political accountability,” said lawmaker Gabriela Estevez. “The Argentine people deserve to know how this fraud was orchestrated and who was responsible.”

Milei’s Role Under Fire

The LIBRA controversy has triggered a wave of political fallout for President Milei. While he has denied direct involvement in the token’s creation or management, critics argue that his public promotion amounted to an implicit endorsement. Milei deleted his original X post shortly after LIBRA’s crash and claimed it was intended only to support entrepreneurship, not financial endorsement.

Argentina’s Congress has formed a special committee to investigate the LIBRA meme coin scandal and President Milei’s alleged role in its dramatic rise and collapse. Source: Ravikash Gupta via X

Opposition lawmakers are pushing for both Milei and his sister, presidential advisor Karina Milei, to appear before the committee—a demand that has so far been rejected. “We will continue to insist that all officials involved must explain themselves,” said lawmaker Sabrina Selva.

Meanwhile, criminal investigations are running parallel to the congressional probe. Prosecutors are working to identify fraudulent transactions and freeze assets linked to the project. Interpol has reportedly been asked to issue a Red Notice for Hayden Davis, the alleged mastermind behind LIBRA, who reportedly cashed out over $107 million before the crash.

Allegations of Market Manipulation

What initially appeared to be a high-potential crypto venture quickly unraveled as on-chain data revealed a pattern of insider trading and liquidity manipulation. Reports suggest entities like Kelsier Ventures and other insiders held up to 85% of the token supply, allowing them to control price movements and sell off during the peak, leaving unsuspecting retail investors with massive losses.

Argentina’s Congress is probing the LIBRA memecoin collapse while its creators quietly cash out millions and launch a new token, $MELANIA. Source: Mpost Media Group via X

A class-action lawsuit has already been filed in New York by Burwick Law against key entities behind the token’s launch. The suit accuses developers and associated firms of orchestrating a “pump-and-dump” scheme designed to defraud investors.

LIBRA Price Forecast: Can It Recover?

Despite the ongoing scandal, market analysts remain divided on LIBRA’s future. Mudrex forecasts a possible price range of $0.10 to $0.50 in 2025, while DigitalCoinPrice is more optimistic, projecting values between $0.29 and $0.70 by year’s end. The bullish case hinges on a potential crypto market rally in 2025, although concerns about regulatory uncertainty and reputational damage weigh heavily on the outlook.

LIBRA is trading right above the $0.49-$0.51 support zone. Source: TradingView

“LIBRA’s fundamentals are overshadowed by controversy right now,” said crypto analyst Hassan Shafiq. “But if the project can decouple from its political baggage and rebuild trust, there’s still speculative interest in its tokenomics.”

For 2030, long-term predictions place LIBRA anywhere from $0.20 to as high as $1.75, although such forecasts remain highly speculative due to the token’s volatility and current legal hurdles.

A Turning Point for Crypto Regulation in Argentina

The LIBRA scandal has sparked broader discussions about crypto governance in Argentina. With inflation soaring and economic instability at home, the lure of quick crypto profits remains strong. But lawmakers and financial regulators are now facing mounting pressure to introduce clearer rules around token promotions, especially by public officials.

Libra (LIBRA) was trading at around $0.052, up 4.13% in the last 24 hours at press time. Source: Brave New Coin

“This incident underscores the need for a comprehensive regulatory framework,” said Representative Oscar Agost Carreño. “We must restore public trust and ensure that digital innovation does not come at the cost of transparency and ethics.”

As the investigation deepens, the LIBRA case is shaping up to be one of the most consequential crypto scandals in Latin America—both for its financial impact and its potential to reshape how crypto is regulated in politically volatile environments.