Hayden Davis Admits LIBRA Token Was a Memecoin
According to the Argentinian press Clarín, cryptocurrency entrepreneur Hayden Davis made a surprising confession in the ongoing LIBRA case in the USA. In documents filed with the Federal Court for the Southern District of New York, Davis admitted that the token, called LIBRA, was merely a memecoin and not an investment instrument. This revelation marks a significant shift in strategy ahead of an August 19 hearing that will determine the fate of the $280 million in frozen assets.
Transfer of Funds to Kraken Exchange
During a meeting with Argentine President Javier Milei at Casa Rosada on January 30, it was discovered that approximately $500,000 in USDC was transferred from wallets associated with Davis to the Kraken exchange. This raised further questions about the nature of Davis’s involvement in the cryptocurrency market.
The Rise and Fall of LIBRA Token
The case surrounding the LIBRA token gained attention after its sudden price surge and subsequent crash during its launch. The token, which Javier Milei indirectly supported on social media, experienced a rapid rise and fall in value within just a few hours, leading to losses for many investors.
Price chart of the altcoin, which once had a market capitalization of over $200 million.
Legal Battle and Defense Arguments
Aside from Hayden Davis, the lawsuit also involves Meteora platform co-founder Benjamin Chow and Kip Protocol executive Julian Peh as defendants. The lawsuit was initiated by individual investor Omar Hurlock, whose lawyers recently requested a “discovery” process to obtain detailed information from the defendants. However, Judge Jennifer L. Rochon denied the request.
Last Thursday, Davis launched a counter-attack with a 30-page defense filing, claiming that Hurlock’s allegations were baseless and lacked concrete evidence of harm. Davis’s legal team argued that Hurlock failed to prove he was a direct victim and was attempting to file a class-action lawsuit without demonstrating his own damages.
*Please note that this article does not constitute investment advice.