LIBRA Memecoin Lawsuit Intensifies as Hayden Davis Testifies to Deny Fraud Claims

In a new development in the ongoing legal battle surrounding the LIBRA memecoin, Hayden Davis, CEO of Kelsier Ventures and the so-called mastermind behind the LIBRA scandal, has submitted a voluntary statement to a federal court in New York, addressing a class action lawsuit filed by U.S. investors.

The investors claim substantial losses following the meteoric rise and abrupt collapse of the LIBRA token, which has been at the center of controversy since its launch. Davis, in his filing, firmly rejected accusations of fraud, insider trading, or any intentional misconduct, attributing the token’s price volatility to external factors beyond his control. The case has drawn international attention, with investigations now underway in both the United States and Argentina, raising questions about the token’s origins and the involvement of high-profile figures.

Davis pointed to a social media post by Argentine President Javier Milei as a key driver of the token’s initial success. According to the filing, Milei’s endorsement on X sparked widespread interest, leading to a surge in purchases and a rapid increase in LIBRA’s price. However, the president’s subsequent decision to delete the post triggered a wave of speculation and rumors, with some investors labeling the project a scam. Davis maintained that he was neither informed nor involved in Milei’s actions, stating that he remains unaware of the reasons behind the post’s removal.

The entrepreneur claims that LIBRA was designed to support small businesses and educational initiatives in Argentina, not to deceive investors. He described the project as an effort to foster economic growth, denying any knowledge of memecoin “snipers” who allegedly purchased large quantities of the token before its launch to profit from the price surge. Davis also challenged the jurisdiction of the New York federal court, arguing that he has no personal or business ties to the state and that the project was entirely conceived and executed in Argentina. He suggested that any legal proceedings should be handled by Argentine courts, a claim that could complicate the ongoing lawsuit.

Investigations and Frozen Assets

The LIBRA case has taken on additional complexity with Davis’ revelation that he attempted to return approximately $100 million in investor funds between February 14 and 15, 2025. This plan was halted by a U.S. court order freezing over $55 million in cryptocurrency assets, further escalating tensions between Davis and the plaintiffs. The frozen funds have become a focal point in the lawsuit, with investors seeking clarity on how the assets were managed and why the repayment effort was initiated. Davis has not provided further details on the circumstances surrounding the transfer, but the court’s intervention underscores the high stakes of the case.

In Argentina, the controversy prompted the formation of a special commission to investigate the token’s collapse and its broader economic impact, particularly focused on President Milei’s involvement, questioning how he obtained information about LIBRA and why he chose to endorse it publicly before retracting his support.

However in May, Milei abruptly dissolved the investigative task force established to examine the controversial LIBRA memecoin scandal. Also earlier this month, Argentina’s Anti-Corruption Office (OA) concluded that President Javier Milei did not violate public ethics laws when he promoted the LIBRA memecoin from his personal X account.