TLDR
- Argentine legal counsel has requested an Interpol Red Notice for Hayden Davis over the LIBRA token collapse
- The cryptocurrency was shared by Argentina’s President Milei before crashing from a $4 billion valuation
- Blockchain analysis shows retail investors lost $251 million while insiders extracted profits
- Davis reportedly earned approximately $100 million from the token’s launch and subsequent crash
- The case has expanded to include allegations of political payments and connections to other crypto schemes
An attorney from Argentina has formally asked for international law enforcement to track down and arrest Hayden Davis, the man behind the controversial LIBRA cryptocurrency. This latest development marks an escalation in the ongoing scandal that has rocked both political and financial circles in Argentina.
Gregorio Dalbon filed the request with prosecutor Eduardo Taiano and judge MarÃa Servini. The officials are conducting an investigation into Argentine President Javier Milei’s role in promoting the failed cryptocurrency.
The legal request specifically asks for an Interpol Red Notice against Davis. Such notices ask police forces in 195 countries to locate and provisionally detain individuals pending extradition proceedings.
Dalbon’s filing argues that Davis presents a flight risk due to his financial resources. The document states that Davis could easily flee or hide if left free during the investigation.
“His key position in creating and promoting the LIBRA cryptocurrency increases the chance he might try to escape justice,”
the legal filing reportedly states. The international nature of the case adds to these concerns.
The LIBRA token first gained attention when President Milei shared it on his social media accounts on February 14. This presidential mention happened just minutes after the token was created.
Following Milei’s promotion, the token’s value skyrocketed to over $4 billion. The bubble burst quickly when the creators, who held most of the supply, sold their holdings in large quantities.
Critics have called the token a classic pump-and-dump scheme. Many investors lost money after buying in at high prices only to see the value collapse.
Davis later defended himself in an interview with YouTuber Coffeezilla. He claimed the token was a failure rather than an intentional scam.
During this interview, Davis admitted to making around $100 million from the token. His firm, Kelsier Ventures, was identified as one of the biggest beneficiaries of the token launch.
Text messages later emerged suggesting Davis may have paid President Milei’s sister, Karina Milei. The alleged payment was to secure the president’s promotion of the token on social media.
Davis has denied making these payments. He claims to have no record of such messages on his phone and rejects allegations of paying the Milei family.
Multiple legal complaints have been filed in the wake of the scandal. Several lawyers have brought fraud charges against President Milei for his role in promoting the token.
The president has defended his actions by claiming he didn’t “promote” the token. He insists he simply “spread the word” about it, a distinction many legal experts find unconvincing.
Blockchain analysis has revealed the extent of investor losses. Research firm Nansen reports that regular investors lost approximately $251 million while insiders profited.
Technical analysis by Bubblemaps uncovered evidence of market manipulation. The report identified tactics such as “sniping” where bots were used to buy tokens early and control market liquidity.
Davis has acknowledged using these techniques. He claimed they were intended to stabilize the token and reinvest liquidity after President Milei’s promotion.
Investigators have found connections between the LIBRA team and other controversial crypto projects. Reports link LIBRA insiders to another questionable token called MELANIA.
Further evidence suggests the LIBRA team discussed launching similar tokens with the Nigerian government. This indicates a pattern of potentially exploitative crypto ventures across multiple countries.
The scandal has caused ripples throughout the crypto industry. Ben Chow, co-founder of decentralized finance platform Meteora, recently stepped down amid the growing controversy.
Dalbon, who previously represented former Argentine president Cristina Fernández de Kirchner in a corruption case, is pushing for Davis’s arrest and extradition to face charges in Argentina.
If approved, the Interpol Red Notice would be distributed to law enforcement agencies worldwide. While not an arrest warrant itself, it signals to authorities that Davis is wanted for extradition.
Most recent market data shows LIBRA trading at just $0.06435, down more than 12% in a single day. The token continues its downward trend as legal and financial consequences mount.
The case highlights growing concerns about celebrity and political endorsements of cryptocurrencies. Regulators worldwide are increasingly scrutinizing such promotions for potential securities violations.
Argentina’s financial authorities have already moved to freeze approximately $100 million in cryptocurrency linked to the scheme. This action came earlier this month as investigations intensified.
The LIBRA scandal represents one of the most high-profile cases linking a sitting head of state to a collapsed cryptocurrency. The involvement of a president makes this case particularly unusual in crypto fraud investigations.
