The Libra Memecoin scandal deepens as Argentina seeks an Interpol Red Notice for Hayden Davis, alleging financial fraud and market manipulation.
Argentina Requests Interpol Red Notice
The Libra Memecoin Scandal has turned into a legal issue as Argentine attorney Gregorio Dalbon formally requested an Interpol Red Notice for Hayden Davis, the founder of Libra and CEO of Kelsier Ventures. This follows LIBRA's market cap skyrocketing to $4.5 billion, before crashing and resulting in hundreds of millions in losses. Dalbon claims Davis, alleged to have orchestrated the token's creation and subsequent crash, poses a flight risk due to his vast resources and global connections.
Political and Financial Scandal of Libra Memecoin
The Libra Memecoin Scandal began on February 15, 2025, when President Milei posted on social media endorsing the LIBRA token. His influence triggered a speculative rush, pushing the token's market value to $4.5 billion within hours. Shortly after, significant liquidity withdrawals exceeding $100 million were made, causing a catastrophic price collapse as LIBRA lost 90% of its value, leaving investors with enormous losses. In response, Milei denied involvement, stating he was only sharing information. He also attempted to deflect criticism by mentioning most affected investors were from China and the USA. Despite his denials, the scandal escalated, leading to multiple investigations into potential insider trading and political corruption.
Legal Battles and Davis's Defense
In response to increasing scrutiny, Hayden Davis has gone on the defensive, claiming that LIBRA was an economic experiment rather than a scam. In a recent interview, Davis blamed the Argentine government for withdrawing their support, which he claims triggered panic selling and the collapse. To strengthen his defense, Davis hired Waymaker Law and Marcos Salt, an expert in cybercrime. Legal analysts suggest his willingness to return investor funds might be seen as an admission of wrongdoing rather than an act of goodwill. If the Interpol request is approved, Davis could face extradition from the US.
The Libra Memecoin Scandal remains one of the most high-profile crypto fraud cases, with significant implications for Argentina's political stability and global crypto regulations.
