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- Hayden Davis shifts legal stance, calls $LIBRA a speculative memecoin.
- $280 million in disputed funds to face court review in August.
- Suspicious crypto transfers coincide with Davis’s political meetings.
Crypto figure Hayden Davis has revised his legal position in a high-stakes fraud case linked to the controversial $LIBRA token. He now claims the token was always a memecoin, not a legitimate investment vehicle. This change comes in a document filed in federal court in New York.
The filing represents the petitions, which amount to a simple challenge to claims made by private investor Omar Hurlock, who accuses Davis of causing widespread financial losses. Davis and his lawyers assert Hurlock does not provide hard evidence of damages directly. They also claim that the plaintiff cannot show any transaction that would establish him as a buyer of $LIBRA.
Davis contends that Hurlock cannot bring a class action without proving individual loss. Defendants’ lawyers are asking the court to dismiss the case from the New York court and transfer the proceedings to a more defense-friendly court, such as Argentina or Texas.
The $LIBRA token gained attention after Argentine President Javier Milei posted about it on Twitter. The price shot up and collapsed within a few hours. Davis now asserts that the project never had any economic potential and was not to be utilized in financing any company ventures.
Authorities Froze Libra Funds After Token Launch
The lawsuit revives a long-standing dispute that flanked a $280 million claim. Officials froze these proceeds some days after releasing $LIBRA. In the upcoming hearing to be held in the Southern District of New York on August 19, the court will decide whether these proceeds are linked to illicit profits.
Other parties that are relevant to the issue are Meteora’s Benjamin Chow and Kip Protocol’s Julian Peh, all of whom are suspected to be involved in arranging the token’s rapid deployment and profits extraction.
The plaintiff had also requested additional testimony and disclosure from Chow and Davis. But that in its entirety was denied to him by the judge. Meanwhile, Davis increased his counterattack by referring to the plaintiff’s legal team as opportunists and unqualified.
Blockchain Traces Reveal More Transactions
During the ensuing legal aftermath, blockchain trackers discovered new trails of money. On the 30th of January, when Davis visited Milei in Argentina’s presidential palace, an Argentine-related portfolio transferred just below $500,000 in USDC to the exchange called Kraken.
The same wallet also links to the $MELANIA token, a speculative crypto token released by Davis. Shortly after a public image of the meeting was released, another Davis-related wallet released over $500,000 through the Bitget platform.
The researchers track these wallets to Davis via a token transfer chain that connects to Kelsier Ventures. These transactions can be significant evidence to the court in probing possible financial misconduct involving Davis’s crypto business ventures.
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