Argentinian Authorities Seek Arrest of U.S. Citizen for 92% 94% Cryptocurrency Plunges

Argentinian authorities have initiated proceedings to arrest Hayden Davis, a U.S. citizen accused of orchestrating pump-and-dump schemes for two memecoins. The move follows a request by an Argentinian prosecutor to a judge to issue an Interpol “Red Notice,” or an international arrest warrant, for Davis. This action is in response to his alleged involvement in the launch of LIBRA, a cryptocurrency inspired by Argentinian president Javier Milei, and MELANIA, backed by the U.S. First Lady Melania Trump.

Davis has publicly acknowledged his role in the launch of LIBRA, and on-chain analysts have linked him to the launch of MELANIA. Both cryptocurrencies plummeted shortly after their launch, with LIBRA losing 92% of its value and MELANIA losing 94% from their respective peaks. Prosecutor Gregorio Dalbón has underscored the urgency of the situation, noting that Davis's financial resources could enable him to evade justice by relocating or remaining in hiding, thereby obstructing the investigation.

President Milei has swiftly distanced himself from LIBRA, asserting that he was misled into endorsing its launch. In a statement, Milei expressed his lack of knowledge about the project's details and his decision to cease promoting it. He also criticized political opponents who might attempt to exploit the situation for personal gain, reiterating his commitment to combating corruption.

The request for Davis's arrest sheds light on the intricate and often murky nature of the cryptocurrency market, where pump-and-dump schemes can result in substantial financial losses for unwary investors. The involvement of prominent figures like Milei and Melania Trump adds a layer of complexity to the case, emphasizing the need for caution and transparency within the cryptocurrency industry. The legal proceedings against Davis will be closely monitored, as the outcome could establish a precedent for handling similar cases in the future.