A lawyer from Argentina has submitted a request for an Interpol Red Notice against Hayden Davis, one of the co-founders of LIBRA.
As reported on March 12 by a local news outlet, attorney Gregorio Dalbon, who previously represented former Argentine president Cristina Fernández de Kirchner, presented this request to prosecutor Eduardo Taiano and Judge María Servini.
An Interpol Red Notice serves as an international alert urging law enforcement agencies across the globe to find and provisionally detain an individual. Similar notices have been issued in notable cryptocurrency cases, such as for Terraform Labs’ Do Kwon.
In the legal filings, Dalbon asserted that Davis held a “central role” in the development and promotion of the LIBRA token, which posed a “procedural risk” due to his financial capabilities that could potentially facilitate his escape or concealment.
LIBRA sparked national controversy after Argentine President Javier Milei posted about it on social media mere minutes after its launch, fueling speculation that his endorsement significantly boosted its rapid ascent.
However, the token experienced a significant decline in value shortly after, erasing $4.4 billion in market capitalization and resulting in substantial losses for many investors.
Blockchain analytics firm Nansen noted that 86% of LIBRA traders suffered financial losses, amounting to an aggregate of $251 million.
Critics allege that Davis and other insiders orchestrated a pump-and-dump scheme, claiming that the creators of the token controlled most of its supply and sold their holdings during the peak.
Recently, Davis has re-emerged after a period of silence, announcing that he has secured legal counsel and intends to address the situation. His legal team includes Brian Klein from Waymaker Law, a prominent firm known for handling intricate financial crime cases involving the SEC and the U.S. Justice Department.
In his statement, Davis insisted on his innocence, asserting that he “merely wanted and sought the success” of LIBRA and had no intention of deceiving investors, as reported.
Meanwhile, Milei has also rejected any allegations of misconduct, claiming that he only “spread the word” about the token rather than actively endorsing it.
As previously mentioned, last week, Taiano informed local media that he aims to freeze approximately $110 million in assets as part of an ongoing investigation regarding Milei’s involvement in the LIBRA controversy.