TLDR
Table of Contents
- Argentine lawyer Gregorio Dalbon has requested an Interpol Red Notice for Hayden Davis, creator of the collapsed LIBRA token
- The LIBRA token was shared by Argentine President Javier Milei, quickly reaching a $4 billion valuation before crashing
- Davis reportedly made approximately $100 million from the token before its collapse
- Retail investors lost an estimated $251 million while insiders profited
- Legal actions are increasing with allegations of fraud and market manipulation
An Argentine lawyer has formally requested an international arrest warrant for Hayden Davis, the co-creator of the controversial LIBRA cryptocurrency token. The memecoin caused a political scandal in Argentina after being promoted by President Javier Milei.
Gregorio Dalbon submitted the request to prosecutor Eduardo Taiano and judge María Servini. These officials are currently investigating President Milei’s involvement in the memecoin project.
The legal filing asks for an Interpol Red Notice to be issued for Davis. An Interpol Red Notice requests law enforcement agencies worldwide to locate and provisionally arrest a person pending extradition.
Dalbon argued that Davis poses a “procedural risk” if he remains free. He claims Davis has access to vast amounts of money that would allow him to flee or hide.
The petition specifically notes Davis’s “central role in the creation and promotion of the $LIBRA cryptocurrency.” It states this increases the likelihood he might try to evade justice.
Dalbon previously represented former Argentine president Cristina Fernández de Kirchner in a corruption case. His request specifically asks for Davis’s arrest and extradition.
Libra Token Scandal
The LIBRA token gained massive attention after President Milei shared it across his social media accounts on February 14. This presidential mention happened just minutes after the token’s creation.
The token quickly reached a peak value exceeding $4 billion. However, the price soon crashed when the token’s creators, who held most of the supply, sold their holdings.
Many critics claim the token was a pump-and-dump scheme. The rapid rise and fall left many investors with major losses.
Davis and his firm, Kelsier Ventures, were reportedly the biggest winners from the LIBRA token launch. In an interview with YouTuber Stephen Findeisen (known as “Coffeezilla”), Davis claimed he made around $100 million.
Davis defended the token as a failure rather than a scam. He claimed he didn’t own the tokens and wouldn’t be selling them.
Reports later emerged that Davis sent a text message bragging about paying President Milei’s sister, Karina Milei. The payment was allegedly to have the president share the memecoin’s details on X (formerly Twitter).
Davis later denied these claims. He said he had no record of such messages on his phone and denied making payments to the Milei family.
The scandal has triggered multiple legal actions. Various lawyers have filed fraud charges against President Milei in Argentine criminal court for promoting the token.
Other lawyers have reported the president for financial crimes to local authorities. Some have even taken complaints to the US Justice Department.
President Milei has defended himself by claiming he didn’t “promote” the LIBRA token. He insists he just “spread the word” about it.
$251 Million in Losses
Blockchain analysis firm Nansen reported that retail investors suffered losses of $251 million. Meanwhile, wallets linked to Davis and another figure named Kelsier extracted major profits before the collapse.
Blockchain investigator Bubblemaps found evidence of market manipulation. They cited tactics such as “sniping” – using bots to buy tokens early and control liquidity.
Davis admitted to these tactics. He claimed they were designed to prevent an immediate collapse and reinvest liquidity once President Milei resumed promoting the token.
Investigations have linked the LIBRA team to other controversial crypto projects. Reports indicate connections between LIBRA insiders and a project called MELANIA.
The LIBRA team reportedly discussed launching a similar token with the Nigerian government. This raises concerns about repeated exploitative crypto ventures across multiple countries.
The scandal has caused shake-ups in the crypto industry. Ben Chow, co-founder of the decentralized finance platform Meteora, recently resigned amid the controversy.
As of the most recent reports, the LIBRA token was trading at $0.06435, down over 12% in a 24-hour period. The price continues to decline as the legal and financial fallout intensifies.
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