LIBRA Is a Memecoin, Not a Business, Says Founder
Hayden Davis admits LIBRA is a memecoin, not an investment project, as U.S. court case over $280M unfolds.
- LIBRA founder calls project a memecoin in court filing
- $500K transferred to Kraken during Argentina meeting
- $280M in assets frozen with court hearing in August
In a surprising revelation, crypto entrepreneur Hayden Davis has officially declared that the LIBRA project is simply a memecoin, not a serious investment venture. The statement came through a court filing in the United States, as reported by Argentine outlet Clarín. Davis’ admission is expected to significantly impact an ongoing legal case involving hundreds of millions of dollars in frozen crypto assets.
LIBRA had previously been portrayed by some backers as a potential investment opportunity. However, Davis clarified that the token was created and marketed purely as a meme-driven cryptocurrency with no formal business plan or financial roadmap. This revelation could alter how the U.S. court evaluates the legitimacy of the project’s fundraising and financial activities.
Mysterious Transfer During Presidential Visit
Adding intrigue to the case, Davis-linked wallets transferred nearly $500,000 in USDC to crypto exchange Kraken on January 30—the same day Hayden Davis reportedly met with Argentina’s President Javier Milei. While the purpose of the transfer remains unclear, the timing has raised eyebrows.
It’s not yet known whether the Argentine government was aware of Davis’ legal troubles or the nature of the LIBRA project during the meeting. There has been no official statement from President Milei’s office regarding the encounter or the subsequent fund transfer.
$280 Million in Frozen Assets Under Scrutiny
The U.S. case surrounding LIBRA involves a staggering $280 million in frozen assets. Authorities are currently investigating whether the funds were raised under misleading pretenses. If LIBRA was promoted as a legitimate investment without proper disclosures, the memecoin classification might not protect Davis from legal consequences.
A court hearing is scheduled for August 19 in New York, and it is expected to shed more light on the project’s inner workings, the sources of its funds, and any potential violations of U.S. securities law.
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