Argentina Requests International Arrest Warrant for Hayden Davis, Accused of Orchestrating LIBRA Memecoin Scam Resulting in $251 Million Losses
The LIBRA scandal has taken a new turn in Argentina. Lawyer Gregorio Dalbon has officially requested the international arrest of Hayden Davis, an American crypto entrepreneur and central figure in the scandal that shook the country. The request was filed with prosecutor Eduardo Taiano and judge María Servini, seeking an international arrest warrant via an Interpol Red Notice to facilitate his extradition from the United States.
Davis is accused of playing a key role in the creation and promotion of LIBRA, a Solana-based memecoin that briefly reached a $4.4 billion market capitalization before collapsing more than 95%, resulting in estimated losses of $251 million for investors.
LIBRA: International Arrest Warrant Issued Against Hayden Davis
The LIBRA affair extends beyond financial fraud. It has stained the administration of Argentine President Javier Milei, who publicly promoted the token on social media before deleting his posts a few hours later. Faced with backlash, Milei attempted to distance himself from the project, claiming he thought it was simply a privately funded venture.
This reversal of stance has not appeased the critics. Milei now faces fraud allegations made by several political figures, including Claudio Lozano, former President of the Argentine Central Bank. The legal case has therefore taken on a political dimension, threatening the stability of the government.
Rapid Progress in Judicial Proceedings as LIBRA Scandal Unfolds
Prosecutor Taiano has already ordered the freezing of $100 million in cryptocurrencies linked to the case, indicating that the investigation is progressing rapidly. Dalbon insists on the immediate arrest of Davis, emphasizing that he has significant financial resources and may attempt to flee.
If accepted, an Interpol Red Notice would enable the provisional arrest of Davis in one of the 195 member countries. However, this procedure does not guarantee extradition, as each country has the freedom to act according to its own laws.
Concerning Precedent for the Crypto Ecosystem
The LIBRA case has revealed the risks associated with extreme speculation and insider trading in memecoins, often promoted by public figures without true transparency. If Davis’s extradition succeeds, it could mark a major turning point in cryptocurrency regulation, particularly in Latin America, where authorities are seeking to regulate these rapidly expanding digital assets.
Argentina, facing a persistent economic crisis, sees this scandal as an opportunity to strengthen crypto sector surveillance. The outcome of the prosecutions against Davis and Milei remains to be seen, as this case could either result in a successful legal action or another judicial failure faced with the gray areas of the crypto market.
