Hayden Davis Admits LIBRA is Memecoin as $280M Freeze Stays

Hayden Davis, a prominent figure in the cryptocurrency sector, has acknowledged in a U.S. court filing that the LIBRA token is a memecoin, a classification that diverges from earlier descriptions of the project as an investment vehicle. The admission comes amid a $280 million asset freeze linked to Davis and co-defendants in a legal dispute. The filing, submitted to Federal Judge Jennifer L. Rochon of the Southern District of New York, argues that LIBRA was never presented as an investment opportunity and lacked detailed business plans or infrastructure. The defense emphasized that memecoins, by nature, are volatile and speculative, with no intrinsic value or utility-based allocation of funds [1].

Blockchain data has drawn attention to Davis’s financial activity during a January 30 meeting with Argentine President Javier Milei at Casa Rosada. Records show a $499,000 USDC transaction executed from a wallet linked to Davis at 2:00:35 p.m., coinciding with the meeting. Subsequent transfers totaling $507,000 via Bitget followed shortly after Milei posted a photo confirming their interaction. Analysts have noted that these wallets were previously active during Davis’s MELANIA token project, further highlighting patterns of speculative activity [2].

The legal battle has intensified as plaintiff Omar Hurlock faces challenges in establishing standing. Davis’s defense contends that Hurlock failed to demonstrate direct harm from the LIBRA token’s collapse, dismissing his attempt to lead a class-action lawsuit. The defense also criticized Hurlock’s legal team for relying on “crypto ambulance chasers,” specifically referencing attorney Max Burwick, who has represented investors in other crypto disputes [3].

A critical juncture in the case arises from contradictions between Davis’s current legal stance and earlier public endorsements. President Milei, who initially praised LIBRA as a tool to “incentivize the growth of the Argentine economy,” deleted related tweets after backlash. Davis’s admission that the token was purely speculative has cast doubt on prior marketing claims, including promises of economic development and small business support [4].

The court’s August 19 hearing will address whether the asset freeze should remain in place and determine the appropriate jurisdiction for the case. Davis’s defense has proposed transferring the case to Argentina or Texas, arguing New York’s jurisdiction is inappropriate. The outcome may hinge on the court’s evaluation of the token’s promotion, wallet activity, and the newly asserted memecoin classification.

The LIBRA case underscores the legal and regulatory challenges facing speculative crypto projects. By reclassifying the token as a memecoin, Davis’s team aims to distance itself from investment-related liabilities. However, the deleted endorsements and transparent blockchain activity complicate this narrative, raising questions about the integrity of marketing claims. The August hearing will be pivotal in determining the legal framework for similar projects in the future.

References:

[1] https://cryptofrontnews.com/hayden-davis-calls-libra-a-memecoin-as-280m-court-case-escalates/

[2] https://cryptofrontnews.com/hayden-davis-calls-libra-a-memecoin-as-280m-court-case-escalates/

[3] https://cryptofrontnews.com/hayden-davis-calls-libra-a-memecoin-as-280m-court-case-escalates/

[4] https://cryptofrontnews.com/hayden-davis-calls-libra-a-memecoin-as-280m-court-case-escalates/