Gregorio Dalbon, an Argentine lawyer, has formally requested Interpol to issue a Red Notice for Hayden Davis, the co-creator of the LIBRA token.
The request is tied to an ongoing investigation into LIBRA’s alleged pump-and-dump scheme, which has implicated Argentine President Javier Milei in a major political scandal.
Background
- Dalbon submitted the request to prosecutor Eduardo Taiano and Judge María Servini, both of whom are investigating President Milei’s potential involvement in the LIBRA token scandal.
- The lawyer argued that Davis poses a “procedural risk”, as his access to substantial funds could allow him to evade justice by fleeing the U.S. or going into hiding.
- The legal filing reportedly states:
“His central role in the creation and promotion of the $LIBRA cryptocurrency, coupled with the international impact of the case, increases the likelihood that he will take steps to evade justice.”
- Dalbon, known for representing former Argentine President Cristina Fernández de Kirchner in a corruption case, is seeking Davis’ arrest and extradition.
- Interpol, the world’s largest international police organization, can issue Red Notices, which request global law enforcement agencies to locate and provisionally arrest a suspect for extradition purposes.
- The LIBRA token was launched on February 14, reaching a peak valuation of $4 billion after Milei shared it on social media just minutes after its creation.
- The token’s creators held a significant portion of the supply and quickly offloaded their holdings, leading to a sharp price crash and allegations that the project was a pump-and-dump scheme.
- Following LIBRA’s collapse, multiple legal complaints were filed against President Milei, including fraud charges in Argentine courts and financial crime reports to both local and U.S. authorities.
Why should you pay attention?
- The case has political implications, as the Argentine president is being investigated for promoting a financial asset that allegedly defrauded investors.
- If the Interpol Red Notice is approved, it could lead to Davis’ arrest and extradition, adding further legal pressure to the case.
- The LIBRA token scandal has raised concerns about crypto-related fraud, potentially influencing future regulations in Argentina and beyond.
- Davis and his firm, Kelsier Ventures, reportedly profited over $100 million from LIBRA’s launch, adding fuel to accusations of insider trading and market manipulation.
Who said what?
- Gregorio Dalbon, in his legal filing, emphasized Davis’ risk of fleeing, stating:
“There is a high likelihood that Davis will take steps to evade justice due to his financial resources.”
- Javier Milei denied any wrongdoing, claiming:
“I didn’t promote the LIBRA token. I simply spread the word about it.”
- In an interview with YouTuber Coffeezilla, Hayden Davis defended LIBRA, stating:
“It was a failure, not a scam.”
- On allegations of bribery, Davis denied paying Milei’s sister to promote the token, claiming:
“I have no record of any such transaction on my phone.”
Zooming out
- The LIBRA token debacle is part of a growing trend where crypto projects promoted by public figures lead to controversy and legal action.
- The case highlights concerns over regulatory gaps, as pump-and-dump schemes remain a persistent issue in the crypto space.
- Crypto-related fraud cases have been on the rise, with authorities in multiple countries tightening oversight to prevent investor exploitation.
- Interpol’s involvement in crypto-related crimes is increasing, signaling that international law enforcement is taking crypto-related fraud more seriously.
