Interpol Warrant Requested for Hayden Davis in LIBRA Crypto Fraud Case
This move intensifies the legal and financial fallout from the incident, which has caused political and financial upheaval in Argentina.
Legal Pursuit and Financial Fallout
Dalbón, who previously represented President Cristina Fernández de Kirchner in a corruption case, has requested an Interpol Red Notice for Davis. He argues that Davis poses a significant flight risk due to his foreign residence and financial resources. The petition claims that Davis played a central role in launching and promoting LIBRA, leading to significant investor losses.
The case has also implicated President Javier Milei, who promoted the LIBRA token shortly before its dramatic collapse. This connection has worsened the controversy, prompting authorities to freeze $100 million in crypto related to the scheme earlier this month.
Massive Losses for Retail Investors
According to blockchain analysis firm Nansen, retail investors lost an estimated $251 million in the LIBRA debacle. At the same time, wallets associated with Davis and another insider, Kelsier, profited significantly before the token’s fall. Blockchain investigator Bubblemaps uncovered evidence of market manipulation, including the use of bots to manipulate liquidity.
Despite Davis admitting to using these tactics to prevent an immediate collapse, the strategy ultimately failed, leaving retail investors with substantial losses while insiders reaped significant rewards.
Broader Impact and Industry Shake-ups
The LIBRA scandal has had wider implications, causing a shake-up in the crypto industry. Ben Chow, co-founder of decentralized finance platform Meteora, resigned amidst the controversy, signaling the ripple effects the scandal has had on the crypto ecosystem.
The Future of the LIBRA Token
As of now, the LIBRA meme coin is continuing its steep decline. According to CoinGecko, the token was trading at $0.06435, down over 12% in the last 24 hours, as the broader bearish market outlook continues to fuel investor uncertainty.
If Dalbón’s request for an Interpol Red Notice is granted, it will alert law enforcement agencies in 195 countries to pursue Davis for extradition, though the notice does not require arrests.
Editorial Team
Reporter at Coindoo
