TL;DR
- Hayden Davis, the man behind LIBRA is facing a class-action over an alleged $100 million liquidity pool exploit, wired $12 million to offshore accounts tied to President Milei’s circle days after their meeting.
- Davis has moved to dismiss the New York suit, arguing the court lacks jurisdiction since he never targeted or operated in the state and contesting Circle’s $57.6 million USDC freeze.
- Political fallout intensifies as Milei’s endorsement and LIBRA’s 94% collapse spur calls for financial audits, while the legal fight may uncover more links or shift venues.
In the wake of a class-action lawsuit accusing him of orchestrating a $100 million liquidity pool drain, LIBRA token mastermind Hayden Davis is now under renewed scrutiny. Argentine press uncovered that, mere days after meeting President Javier Milei, Davis wired over $12 million to offshore accounts tied to Milei’s inner circle.
Those transfers, revealed in court filings, are fueling speculation that political endorsements and private dealings may have helped inflate LIBRA’s meteoric rise before its dramatic collapse.
El 03/02 envió 1.991 M de dólares a una wallet, que luego hizo 3 transacciones a Bitget de 500 mil y 2 txs de 1 M.
En las 3 tx probó enviar primero 5 dólares. Recordemos que el 04/02 se conoce que Novelli abrió su caja de seguridad en el banco Galicia pic.twitter.com/jz33jCNe0t
— Fernando Molina (@fergmolina) July 9, 2025
Jurisdiction Battle Kicks Off in New York
Davis has filed a motion to dismiss the New York class-action suit, arguing the court lacks authority. His legal team contends Davis never lived, worked, or specifically targeted marketing efforts in New York during LIBRA’s worldwide launch. By labeling Circle’s temporary freeze of $57.6 million in USDC as overreach, Davis insists the plaintiffs cannot tie their claims to any New York-centric activity, and that adjudicating the case in the state would violate due process.
Political Overtones Shadow Token’s Collapse
LIBRA briefly skyrocketed to a $4.6 billion market cap after Argentine President Milei publicly backed the meme coin on social media. But as LIBRA plunged 94% in value, Argentine legislators demanded answers about Milei’s involvement.
Now, these newly disclosed transfers are reigniting criticism from opposition leaders, who allege Milei’s administration improperly benefited from Davis’s project. While Argentina’s corruption watchdog has yet to open a probe, lawmakers are calling for a full audit of both the president’s finances and LIBRA’s operating accounts.
What Lies Ahead for LIBRA Litigation
With political intrigue swirling around high-stakes fund flows and Davis’s jurisdictional challenge pending, the LIBRA saga is set to intensify. If the New York court rejects the dismissal bid, discovery phases could unearth further transactional details linking Davis, Milei, and offshore vehicles.
Conversely, a favorable ruling for Davis could shift the battle to another jurisdiction, potentially delaying reparations for token holders. Either way, investors and policymakers alike will be watching closely as the boundaries between global crypto promotions, sovereign endorsements, and legal accountability are tested.
