The LIBRA meme coin scandal, which sent shockwaves through Argentina’s political and financial spaces, has entered a new phase. Argentine lawyer Gregorio Dalbón has formally requested an international arrest warrant for Hayden Davis, the alleged key figure behind the token’s collapse.
Meanwhile, the Libra price remains steeply declining amid frothing FUD (fear, uncertainty, and doubt), with the broader bearish market outlook exacerbating the losses.
Argentine Lawyer Pursues Legal and Financial Fallout in Libra Scandal
Dalbón, who also represented former Argentine President Cristina Fernández de Kirchner in a corruption case, filed the petition on Tuesday. Local media Página12 reported that other legal experts in the case include lead prosecutor Eduardo Taiano and Judge María Servini.
The request seeks an Interpol Red Notice for Davis. It urges law enforcement worldwide to locate and provisionally arrest him pending extradition from the US. Dalbón’s petition argues that Davis poses a significant flight risk due to his financial resources and foreign residence.
“Given the magnitude of the scandal and the significant losses caused to investors, the procedural risk implied by Hayden Mark Davis remaining free is evident,” Argentina local media Perfil wrote, citing the petition.
Dalbón also contends that Davis played a “central role in creating and promoting LIBRA.” He says this reinforces allegations that the token’s launch and subsequent collapse were orchestrated for insider profit.
The push comes as this scandal deeply implicated President Javier Milei’s administration. This worsened after he publicly promoted the LIBRA token shortly before its catastrophic price crash. The case has sparked major controversy in Argentina, with authorities already moving to freeze approximately $100 million in crypto linked to the scheme earlier this month.
LIBRA Insiders Profited While Investors Lost Millions
Blockchain analysis firm Nansen recently reported that retail investors suffered staggering losses of $251 million. Meanwhile, wallets associated with Davis and another key figure, Kelsier, extracted significant profits before the token’s collapse.
Blockchain investigator Bubblemaps also uncovered evidence of market manipulation. It cited tactics such as “sniping” – using bots to buy tokens early and control liquidity.
Davis admitted to these tactics, claiming they were designed to prevent an immediate collapse and reinvest liquidity once President Milei resumed promoting the token. However, this strategy failed, leaving retail investors with heavy losses while insiders suffered substantial gains.
Further investigations linked the LIBRA meme coin team to other controversial crypto projects. Reports indicate connections between LIBRA insiders and MELANIA. The LIBRA team reportedly discussed launching a similar token with the Nigerian government, raising concerns about repeated exploitative crypto ventures across multiple countries.
The ripple effects of the scandal have also led to significant shake-ups in the crypto industry. Ben Chow, co-founder of the decentralized finance platform Meteora, recently resigned amid the controversy. This highlights the broader impact of the LIBRA debacle on the crypto ecosystem.
If Dalbón’s request for a Red Notice is approved, Interpol will distribute it to its 195 member countries. While a Red Notice does not mandate arrests, it signals to law enforcement agencies worldwide that Davis is wanted for extradition.
Data on CoinGecko shows that the LIBRA meme coin was trading for $0.06435 as of this writing, down over 12% in the past 24 hours.
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