TLDR
- In a striking move, Argentine attorney Gregorio Dalbon has filed for an Interpol Red Notice to be issued for Hayden Davis, the mastermind behind the discredited LIBRA token.
- The LIBRA token, strongly backed by Argentina's President Javier Milei, soared to a staggering valuation of $4 billion before facing a devastating downfall.
- Allegations suggest that Davis profited significantly, pocketing roughly $100 million from the token, prior to its decline.
- While insiders reaped the benefits, retail investors found themselves facing a hefty $251 million loss in total.
- A mounting number of legal suits are being filed, accusing the orchestrators of engaging in deceitful practices and manipulating the market.
Highlighting a significant political scandal, an Argentine attorney has made a formal appeal for an international arrest order against Hayden Davis, the co-creator of the contentious LIBRA cryptocurrency token, which was a focal point of controversy following endorsement by President Javier Milei.
This request was officially presented to prosecutor Eduardo Taiano and judge María Servini by Gregorio Dalbon. These judicial figures are currently delving into President Milei’s involvement in the now-notorious memecoin initiative.
The legal documentation is advocating for an Interpol Red Notice to be released for Davis, which is essentially a global request to locate and temporarily detain an individual awaiting extradition procedures.
Dalbon emphasized that Davis represents a 'flight risk' as long as he remains at liberty, suggesting that his substantial financial resources could facilitate an escape or a period of hiding.
The filing elaborates on Davis’s intricate involvement in the inception and marketing of the $LIBRA cryptocurrency, underlining the probability that he might seek to elude law enforcement actions.
Dalbon, with a history of representing former Argentine president Cristina Fernández de Kirchner in corruption cases, has laid down a request for the arrest and extradition of Davis.
Libra Token Scandal
The LIBRA token's astonishing rise to fame was amplified by President Milei’s strategic dissemination of it on his social networking platforms on February 14, shortly after the token's initiation.
The LIBRA token swiftly hit a valuation peak north of $4 billion, but the bubble burst as the token's creators, holding the lion’s share, divested their interests.
Detractors have labeled the venture as a classic pump-and-dump scheme, leaving numerous participants with heavy financial setbacks.
Reports suggest that Davis and his company, Kelsier Ventures, emerged as primary beneficiaries following LIBRA's market entry. In a candid discussion with YouTuber Stephen Findeisen, known to many as 'Coffeezilla', Davis revealed earnings in the vicinity of $100 million.
Davis defended the endeavor, citing it not as fraudulent but merely unsuccessful, asserting a lack of personal holdings and no intentions of liquidating any tokens.
Further accounts allege Davis boasted about financially compensating President Milei’s sister, Karina Milei, purportedly to ensure the president's endorsement of the memecoin on X (the platform formerly called Twitter).
Davis refuted these allegations, insisting no such communications exist on his device and denying any monetary transactions with the Milei family.
The unfolding scandal has catalyzed a series of legal pursuits. Attorneys have levied charges of fraud against President Milei in Argentina’s criminal courts, implicating him in the promotion of the token.
Moreover, some lawyers have reported the president for financial transgressions to regional authorities, while others have raised the issue with the U.S. Justice Department.
In his defense, President Milei has asserted that his role was merely to 'disseminate information' about the LIBRA token, not actively promote it.
$251 Million in Losses
The firm Nansen, an expert in blockchain analysis, documented how individual investors bore $251 million in losses. Simultaneously, wallets connected to Davis and another figure known as Kelsier were found to have managed considerable gains before the crash. Investigative work by Bubblemaps uncovered market manipulation patterns, detailing methods such as 'sniping' – a strategy involving automated bots to acquire tokens early and manipulate liquidity pools.
Davis conceded to utilizing such strategies, claiming they were preventative measures to avert a premature collapse and to reinvest liquidity when President Milei resumed promotional activities.
Evidence has surfaced tying the LIBRA team to other contentious crypto projects, with reports unveiling links between LIBRA insiders and an initiative called MELANIA.
Conversations within the LIBRA team reportedly entertained launching a similar token in collaboration with the Nigerian government, sparking fears of a pattern of exploitative crypto ventures across diverse nations.
The scandal's repercussions have reverberated throughout the crypto sector. Notably, Ben Chow, co-founder of the decentralized finance platform Meteora, has resigned amid the growing controversy.
Recent updates show the LIBRA token trading at approximately $0.06435, reflecting a decline of over 12% within a mere 24-hour span. This comes as the legal and financial ramifications continue to mount.
Editor-in-Chief at Blockonomi and Founder of Kooc Media, a UK-based online media entity. An advocate for Open-Source Software, Blockchain Technologies, and ensuring a Free and Fair Internet accessible to all.
