The Libra coin scandal deepens: $ 280 million in frozen assets to be reviewed by the New York Court
A high -profile cryptocurrency scandal that involves the Libra currency is now under the center of attention while a New York court prepares to evaluate the legality and property of $ 280 million in frozen assets linked to the digital token. The case, which involves businessman Hayden Davis and two associates, has shaken international financial circles and caused political controversy in Argentina.
Legal procedures, established for a crucial hearing on August 19, can determine the future of frozen funds, which prosecutors claim were accumulated through deceptive promotional campaigns and cryptographic questionable treatment. As the investigation takes place, details are emerging that tie Davis’s memory to political figures and financial transfers that have raised red flags for regulators.
A scandal rooted in a meme coin
In the heart of the controversy is Hayden Davis, a cryptographic businessman who has admitted that Libra was a memory, a typically created digital asset as a joke or internet meme without inherent value. However, his last legal strategy contradicts previous public claims, including those of Argentine President Javier Milei, who previously supported Token as a tool to train small businesses in Argentina.
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During a private meeting held at the Presidential Palace, Casa Rosada, on January 30, Davis linked his cryptographic wallet and transferred $ 500,000 in Stablecoin USDC to an account allegedly linked to President Milei. The transaction occurred at 2:00 pm local time, in the presence of businessman Mauricio Novelli and other interested parties. This transfer, which was tracked in the chain, immediately took suspicions from financial authorities in the United States.
The same day, Davis executed another transaction of $ 507,000 using the Bitget crypto platform. Investigators believe that these transfers may be related to non -disclosed agreements, potentially violating regulations against money laundering.
According to the Prosecutor’s Office, transfers originated in a wallet known as “Yubw”, widely that it is believed to be linked to Davis based on its transactions history. This same wallet also participated in a previous project called $ Melania, a cryptocurrency that referred to the former American first lady Melania Trump. The Token of $ Melania generated approximately $ 4.9 million in sales, a large part of the same channeling through the same cryptographic wallet.
Legal arguments and battle of jurisdiction
Davis and his coacked, Benjamin Chow and Julian Peh, are currently under investigation to orchestrate what the authorities describe as a “cryptographic scheme.” It is believed that frozen $ 280 million represent the upward and descending profits obtained through the sale of the Token Libra.
In the judicial documents presented in early July, Davis’s legal team argued that Libra never intended to be a financial product and emphasized its nature as a memeño. “It is not different from Dogecoin or Shiba Inu,” the defense said. “Investors never promised yields, and the value of the Token was speculative from day one.”
However, this narrative firmly contrasts with previous marketing campaigns and social media backup, including those of President Milei, which promoted Libra as an instrument to support entrepreneurship in Argentina. After the emergence of the scandal, Milei eliminated several promotional positions and since then he has dissociated the LIBRA project, stating that he was not aware of the operational details and financial flows.
In addition to the complexity of the case, there is a motion of Davis’s lawyers who request that the case be transferred out of New York and Texas and Argentina, citing jurisdictional overreach and questioning the legal basis to celebrate assets in the United States. Prosecutors, however, argue that because transactions approved through US exchanges such as Kraken and Bitget, US courts have the right to proceed.
Investor behind the demand
The legal action was initiated by the private investor Omar Hurlock, who states that he suffered financial losses due to deceptive promotions related to the token of Libra. Hurlock, who resides in the United States, alleges that the currency was falsely marketed as a legitimate financial instrument and was deceived to invest during the maximum phase of the file.
Davis’ lawyers, however, question the credibility of Hurlock’s statements. They argue that it cannot definitely demonstrate that it bought the Token or suffered direct financial damage. The legal team also accused the Hurlock representation of being “cryptographic ambulance hunters”, a derogatory term used to describe opportunistic lawyers looking for rapid victories in the volatile cryptographic markets.
Despite the dismissal of the defense, legal analysts believe that the Court will probably allow the case of Hurlock to continue, since it raises significant questions about the promotion of tokens, cross -border financial flows and the ethical limits of political support.
Political repercussions
The case of Libra has spread to political discourse in Argentina, where opposition legislators have requested greater transparency with respect to the participation of President Milei in the project. Although charges have not been presented against her, critics argue that her participation in the promotion of currency in social networks, followed by the abrupt elimination of related publications, poorly reflects the integrity of her administration.
Argentine Anti -Corruption Guardians have also begun to investigate the meeting of January 30, examining whether the transfer of $ 500,000 represents a non -declared financial gift or bribery. While Davis argues that the funds were destined for charit or business development purposes, the lack of documentation and the clandestine nature of the transfer have fed suspicions.
Meanwhile, Blockchain forensic analysts continue to scrutinize the data in the chain linked to the Yubw wallet. The initial results show overlapping transaction patterns between LIBRA and other projects led by Davis, which suggests a possible recycling of investor funds in multiple currencies with a questionable value.
The way ahead
As the judicial hearing of August 19 is approaching, legal observers say that the case could become a historical moment for cryptographic regulation. The Court is expected to rule not only on the provision of $ 280 million, but also about whether marketing and memecoins distribution fall under securities laws.
“This case could establish a precedent,” says Jonathan Murray, a lawyer for financial crimes based in New York. “If the Court considers that Memecoins promoted as investment tools, regardless of resignations, they fall under the Securities Law, it could open the gates to dozens of similar demands.”
Back in Argentina, the scandal continues to dominate the holders, and the local media question the ties between digital assets and the influence of the government. With the growing evidence, changing narratives and significant sums at stake, the case of the Libra currency is emerging as one of the most consistent legal battles of the year.
If Davis and his associates may claim frozen assets or face harder sanctions it remains uncertain. However, what is clear is that this case will resonate far beyond the courtroom, raising difficult questions about financial transparency, political responsibility and the future of decentralized finances.
Writer
@Ellena
Ellena is an experienced cryptographic writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides information about the latest trends and innovations in the currency space.
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