Interpol Red Notice Sought for Hayden Davis in LIBRA Crypto Scandal

The Rise and Fall of LIBRA

LIBRA was launched on February 14, 2025, and quickly garnered attention, partly due to endorsements from high-profile figures, including Argentine President Javier Milei. Milei shared information about the token on his social media platforms shortly after its creation, which contributed to its rapid surge in value, reaching a market capitalization of over $4 billion.

However, this meteoric rise was short-lived. The token's creators allegedly held a significant portion of the supply and reportedly sold their holdings at the peak, causing the token's price to plummet. This sudden crash led to widespread accusations of a "pump-and-dump" scheme, with many investors suffering heavy losses. Blockchain analytics firm Nansen estimated that 86% of LIBRA traders incurred losses, amounting to a combined $251 million.

Legal Actions and Interpol Involvement

In response to the fallout, various legal actions have been initiated. Attorney Gregorio Dalbón, known for representing former Argentine President Cristina Fernández de Kirchner in a corruption case, filed a request with prosecutor Eduardo Taiano and Judge María Servini to issue an Interpol Red Notice for Hayden Davis. Dalbón argued that Davis poses a significant flight risk due to his financial resources, which could facilitate evasion of justice.

An Interpol Red Notice is a request to law enforcement worldwide to locate and provisionally arrest an individual pending extradition or similar legal action. While not an international arrest warrant, it serves as a powerful tool in international law enforcement cooperation.

Hayden Davis's Position

Hayden Davis, a U.S. citizen and founder of Kelsier Ventures—the Delaware-registered company behind LIBRA—has denied allegations of intentional wrongdoing. In a recent interview with YouTuber Stephen Findeisen, known as "Coffeezilla," Davis defended the token as a failure rather than a scam. He acknowledged netting around $100 million but claimed he did not own the tokens and had no intention of selling them.

Davis's legal team maintains that his only goal was to ensure LIBRA's success and that he had no intent to defraud investors. They argue that the project's failure was not due to malicious intent but rather market dynamics and unforeseen challenges.

President Milei's Involvement

President Javier Milei's involvement has also come under scrutiny. After promoting LIBRA on his social media accounts, Milei later backtracked, stating he was unaware of the project's details and ceased promoting it once he became aware. He has denied any wrongdoing, insisting he merely "spread the word" about the token rather than formally endorsing it.

Reports have emerged suggesting that Davis sent a text message bragging about being able to pay Milei’s sister, Karina Milei, to have the president share the memecoin’s details on social media. Both Milei and his sister have denied receiving any payments, and Davis later stated he had no record of this on his phone.

Ongoing Investigations and Potential Outcomes

The request for an Interpol Red Notice is part of a broader investigation into the LIBRA scandal. Prosecutor Eduardo Taiano has reportedly sought to freeze over $100 million worth of digital assets associated with the case. The investigation aims to uncover the extent of the alleged fraud and the involvement of various parties.

If the Red Notice is issued, it would alert law enforcement agencies in Interpol's 195 member countries to locate and provisionally arrest Davis, pending extradition or similar legal action. However, the issuance of a Red Notice does not guarantee arrest, as each member country decides whether to act on it based on its own laws and international obligations.

Implications for the Cryptocurrency Industry

The LIBRA incident has raised concerns about the regulatory oversight of cryptocurrency projects and the potential for fraud within the industry. It underscores the need for investors to exercise caution and conduct thorough due diligence before investing in new tokens, especially those heavily promoted by public figures.

The case also highlights the challenges regulators face in policing the rapidly evolving cryptocurrency landscape. As digital assets become more mainstream, ensuring investor protection while fostering innovation remains a delicate balance for authorities worldwide.

The LIBRA controversy serves as a cautionary tale about the potential risks in the cryptocurrency market. The legal actions against Hayden Davis and the scrutiny of President Milei's involvement reflect the complexities of regulating digital assets and the importance of transparency and accountability in the industry. As investigations continue, the outcomes may have significant implications for future cryptocurrency projects and their governance.