Interpol requested warrant for Hayden Davis in LIBRA Crypto fraud case
The request for an Interpol Red Notice for Hayden Davis in the LIBRA crypto fraud case has significantly heightened the legal and financial repercussions stemming from the incident, which have sparked political and financial turbulence in Argentina.
Attorney Dalbón, known for representing former President Cristina Fernández de Kirchner in a corruption lawsuit, has sought the Interpol Red Notice for Davis. Concerns persist regarding Davis being a substantial flight risk due to his international residency and financial means. Allegations suggest Davis played a pivotal role in the initiation and promotion of the LIBRA token, resulting in substantial financial losses for investors.
The involvement of President Javier Milei, who endorsed the LIBRA token shortly before its abrupt downfall, has compounded the controversy. This connection led authorities to freeze approximately $100 million in cryptocurrency linked to the scheme earlier this month.
Retail investors bore the brunt of the LIBRA debacle, with estimates from blockchain analysis firm Nansen indicating losses amounting to around $251 million. Simultaneously, wallets associated with Davis and another individual, Kelsier, witnessed significant profits before the token’s collapse. Investigations conducted by Blockchain investigator Bubblemaps exposed evidence of market manipulation such as the deployment of bots to influence liquidity.
Acknowledging the use of these tactics in an attempt to avert an immediate collapse, Davis failed in his strategy, leaving retail investors facing substantial losses while insiders accrued sizeable rewards.
The ripple effects of the LIBRA scandal extended beyond the immediate parties involved, leading to the decision by Ben Chow, co-founder of decentralized finance platform Meteora, to resign amidst the controversy. This resonated as a sign of the scandal’s reverberation throughout the crypto ecosystem.
Presently, the LIBRA meme coin continues its descent, trading at $0.06435 according to CoinGecko, registering a more than 12% decline over the past 24 hours. The prevailing negative market sentiment further fuels uncertainties among investors.
Should Dalbón’s plea for an Interpol Red Notice on Davis be granted, it would signal to law enforcement agencies spanning 195 countries to pursue Davis for extradition, without necessitating immediate arrests.
