According to the Argentinian press Clarín, cryptocurrency entrepreneur Hayden Davis made an important confession in the ongoing LIBRA case in the USA.
In documents filed with the Federal Court for the Southern District of New York, Davis admitted that the token, called LIBRA, was merely a memecoin and not an investment instrument. This admission was interpreted as a shift in strategy ahead of an August 19 hearing that will determine the fate of the $280 million in frozen assets.
Another striking detail of the scandal occurred during a meeting with Argentine President Javier Milei at Casa Rosada on January 30. It was determined that approximately $500,000 in USDC was transferred from wallets associated with Davis to the Kraken exchange.
The case in question came to the fore after the LIBRA token’s sudden price surged and crashed during its launch. The token is among the projects Javier Milei has indirectly supported on social media. However, the token’s rapid rise and fall in value within just a few hours caused losses for many investors.
Price chart of the altcoin, which once had a market capitalization of over $200 million.
In addition to Hayden Davis, the lawsuit also names Meteora platform co-founder Benjamin Chow and Kip Protocol executive Julian Peh as defendants. The lawsuit was initiated by individual investor Omar Hurlock. Hurlock’s lawyers last week requested the initiation of a “discovery” process to force the defendants to provide detailed information about the incident, but Judge Jennifer L. Rochon denied the request.
Things escalated further last Thursday with a counter-attack from Davis. In a 30-page defense filing obtained by Clarín, Davis argued that Hurlock’s allegations were baseless and that Hurlock hadn’t presented any concrete evidence of harm. Davis’s lawyers stated, “The plaintiff can’t even prove he’s a direct victim. He’s attempting to file a class-action lawsuit without demonstrating his own damages.”
*This is not investment advice.