In recent court proceedings, LIBRA founder Hayden Davis admitted that the project is a memecoin, which may affect current legal cases.
MEMECOIN OR INVESTMENT?
Hayden Davis has officially declared that the LIBRA project is a memecoin and not a serious investment initiative. This statement was made in U.S. court filings and reported by Argentine publication Clarín. According to Davis, the token was created and marketed purely as a meme-driven cryptocurrency with no formal business plan or financial strategy. This approach could significantly impact the legitimacy of the project's fundraising and financial activities in the eyes of the court.
Mysterious Transfer During Presidential Meeting
During the court case, it was revealed that nearly $500,000 in USDC was transferred to crypto exchange Kraken on January 30, the same day Davis met with Argentine President Javier Milei. The purpose of the transfer remains unclear; however, this has added intrigue to the case. It is uncertain whether the Argentine government was aware of Davis' legal troubles or the true nature of the LIBRA project during the meeting, as no official statements have been released from the president's office.
$280 Million in Frozen Assets Under Scrutiny
The case surrounding LIBRA involves a staggering $280 million in frozen assets, and authorities are investigating whether the funds were raised under misleading pretenses. If LIBRA was promoted as a legitimate investment without proper disclosures, this classification as a memecoin may not shield Davis from legal consequences. A court hearing is scheduled for August 19 in New York, where insights into the project's inner workings and potential violations of U.S. securities law will be examined.
Thus, Hayden Davis' recent statements regarding the status of the LIBRA project as a memecoin could alter the course of legal proceedings concerning a vast amount of frozen assets and the legitimacy of the project's funding.
