TL;DR
- Argentina has requested an Interpol Red Notice for Hayden Davis, creator of the LIBRA token, amid allegations of market manipulation and investor losses totaling $251 million.
- Blockchain investigators revealed that wallets linked to Davis and others profited significantly before LIBRA’s collapse, raising concerns about insider trading and fraudulent practices.
- The scandal has shaken the crypto industry, with ripple effects including high-profile resignations and scrutiny over other ventures linked to LIBRA’s team.
Argentina has taken a significant step in the ongoing LIBRA token scandal by filing for an Interpol Red Notice against Hayden Davis, the creator of the controversial cryptocurrency. Argentine lawyer Gregorio Dalbón, known for representing former President Cristina Fernández de Kirchner, has formally requested an Interpol Red Notice for Hayden Davis.
The request, submitted to lead prosecutor Eduardo Taiano and Judge María Servini, aims to have Davis located and detained globally, pending extradition from the United States. Dalbón argues that Davis poses a significant flight risk due to his financial resources and foreign residency.
The LIBRA token scandal has caused substantial investor losses and legal repercussions. Blockchain analysis firm Nansen reported that retail investors suffered devastating losses of $251 million when the token collapsed.
At the same time, wallets linked to Davis and another prominent individual, Kelsier, extracted substantial profits before the token’s decline. Blockchain investigators uncovered evidence of market manipulation tactics, such as automated bot purchases to control liquidity.
Market Manipulation and Investor Losses
Davis has acknowledged using such tactics but claimed they were meant to prevent an immediate crash and reinvest liquidity when Argentine President Javier Milei resumed promoting the token. However, this plan failed, leaving many retail investors in Argentina and other countries at a loss while insiders profited.
The controversy deepens as LIBRA’s team has been linked to other questionable crypto ventures, including MELANIA, another project accused of being a rug pull. Reports also suggest that LIBRA insiders were in discussions with officials from Nigeria to launch a similar token, raising concerns about repeated crypto-related schemes across multiple countries.
Broader Implications for the Crypto Industry
The LIBRA scandal has also led to ripple effects within the broader cryptocurrency industry. Ben Chow, co-founder of the decentralized finance platform Meteora, recently resigned, further highlighting how deeply the issue has shaken the sector.
If Interpol approves Dalbón’s request for a Red Notice, Davis will be flagged as a wanted individual across 195 countries. While a Red Notice does not mandate immediate arrest, it serves as a warning to international law enforcement agencies that Davis is being pursued for extradition.
