In recent developments within the cryptocurrency sector, the LIBRA token has become embroiled in significant controversy. Argentine lawyer Gregorio Dalbon has formally requested the issuance of an Interpol Red Notice against Hayden Davis, the co-creator of the LIBRA token. This request has surfaced in connection with the ongoing investigations surrounding President Javier Milei’s alleged involvement in the political scandal triggered by the token’s explosive introduction.
Dalbon’s request was directed to prosecutor Eduardo Taiano and judge María Servini, who are actively probing the president’s role in the case. The lawyer expressed concerns over the potential “procedural risk” if Davis were to remain at large, citing that his financial resources could enable him to evade justice—either by fleeing the United States or disappearing altogether.
The implications of this case extend beyond Argentina, as the LIBRA token gained astonishing popularity shortly after its creation on February 14, reaching a valuation of over $4 billion with President Milei prominently promoting it on his social media accounts. However, allegations have surfaced suggesting that the creators of LIBRA may have engaged in a pump-and-dump scheme, holding most of the token’s supply before selling their holdings and subsequently causing a drastic price crash.
Following the collapse of LIBRA, various legal actions have been initiated against President Milei. Some lawyers have filed fraud charges, asserting that the promotion of LIBRA equated to deceptive practices that misled investors. Additionally, reports suggest complaints have been lodged with both local authorities in Argentina and the U.S. Justice Department.
In his defense, Davis attempted to distance himself from accusations of wrongdoing in an interview. He claimed that the LIBRA project, while unsuccessful, was not inherently fraudulent. Furthermore, he indicated that he personally profited significantly from the token’s launch, allegedly netting around $100 million, yet insisted he did not directly own the tokens.
This evolving situation serves as a stark reminder of the potential legal repercussions surrounding cryptocurrency ventures. As regulators and law enforcement agencies navigate the complexities of digital currencies, the LIBRA case underscores the necessity for accountability and transparency in this burgeoning market. With an Interpol Red Notice pending, the international community awaits further developments, as Davis’s fate may well hinge upon the cooperative efforts of global law enforcement.
