Libra scandal: Hayden Davis refutes scam accusations in New York statement

Hayden Davis, the CEO of Kelsier Ventures and the mind behind the $LIBRA cryptocurrency, has refuted claims of engaging in fraudulent activities in connection with the coin’s debut. He stated that he and his company do not operate out of New York, where a legal suit is currently in progress.

The $LIBRA cryptoscandal came to light on February 14, after President Javier Milei made a post on X, a social media platform, about the token and the Viva La Libertad! initiative, set up to financially support small businesses in Argentina. Following the publication, the value of $LIBRA experienced a sudden increase, only to plummet shortly afterward. Subsequently, approximately US$100 million was withdrawn by developers from the project, sparking accusations that the operation was a form of “pump and dump,” alongside allegations of insider trading. Milei promptly removed his post several hours later.

The fallout from the scandal triggered investigations in various countries, including Argentina, Spain, and the United States. While Milei stated at the time that he deleted his post due to a lack of knowledge about the project’s specifics, critics have raised doubts about the timing and content of his post, suggesting potential coordinated actions preceding its publication.

Months prior to the cryptocurrency’s launch, Milei and Davis had met at the Casa Rosada in Buenos Aires.

In a surprise move, Davis submitted a three-page statement to the New York court handling the class action lawsuit filed against him and his company. He asserted that the collapse of the cryptocurrency occurred as a result of Milei’s decision to take down the post only a minute after creating the token.

Davis expressed uncertainty about the reasons behind Milei’s post deletion and emphasized that the primary goal of the launch was to provide financial backing to small enterprises and educational initiatives in Argentina.

The investigation seeks to ascertain whether any illegal activities were carried out in relation to the release and subsequent downfall of $LIBRA. Despite his connection to the project, Milei is not a subject of the legal proceedings.

“I am providing this statement with the understanding that I have not, and do not, agree to the jurisdiction of New York,” Davis stated in his declaration, attempting to distance himself from the New York-based inquiry. He clarified that Milei’s post on X led to a surge in $LIBRA activities and asserted that the accusations labeling the operation as a scam were unfounded and persist as such.

Furthermore, Davis rejected allegations of insider trading, the exploitation of confidential information for personal gain or the benefit of others, as well as claims suggesting his involvement in the procurement of “snipers” – individuals who acquired the token right before its launch – or that he had adopted such tactics himself.