An Argentine lawyer has formally requested an Interpol Red Notice against Hayden Davis, the co-creator of LIBRA, in connection with the controversial cryptocurrency’s rapid rise and collapse.
Legal Action Against Hayden Davis
According to a March 12 report from local media outlet Página 12, attorney Gregorio Dalbon, known for representing former Argentine president Cristina Fernández de Kirchner, submitted the request to prosecutor Eduardo Taiano and Judge María Servini.
An Interpol Red Notice is a global alert requesting law enforcement agencies worldwide to locate and provisionally arrest an individual. Similar notices have been issued in high-profile crypto cases, including the one against Terraform Labs’ Do Kwon.
In court documents, Dalbon alleged that Davis played a “central role” in the creation and promotion of the LIBRA token and posed a “procedural risk” due to his financial resources, which could allow him to evade authorities or go into hiding.
LIBRA’s Controversial Rise and Fall
LIBRA became a national controversy after Argentine President Javier Milei shared the token on social media minutes after its launch, fueling speculation that his endorsement contributed to its meteoric rise. However, the token’s price crashed soon after, erasing $4.4 billion in market capitalization and leaving thousands of investors with heavy losses.
According to blockchain analytics firm Nansen, 86% of LIBRA traders lost money, amounting to a combined $251 million.
Allegations of a Pump-and-Dump Scheme
Critics allege that Davis and other insiders orchestrated a pump-and-dump scheme, holding the majority of the token’s supply and selling their holdings at the peak price, leaving retail investors with severe losses.
Davis recently resurfaced after weeks of silence, announcing that he has hired legal representation and plans to address the case. His legal team includes Brian Klein of Waymaker Law, a firm specializing in complex financial crime cases involving the SEC and the U.S. Justice Department.
In a statement, Davis denied any wrongdoing, claiming he “only wanted and sought the success” of LIBRA and had no intent to defraud investors, according to the Página 12 report.
President Milei and the LIBRA Investigation
Meanwhile, President Javier Milei has also denied any involvement in the alleged scheme, insisting that he merely “spread the word” about the token rather than formally promoting it.
As previously reported by crypto.news, prosecutor Eduardo Taiano has stated that authorities plan to freeze approximately $110 million in assets as part of an ongoing investigation into Milei’s potential involvement in the LIBRA scandal.
With an Interpol Red Notice request now in motion, the case against Hayden Davis could take on international dimensions, placing increased scrutiny on the role of LIBRA’s creators and their financial dealings.
