LIBRA promoter Davis calls token a ‘memecoin’ in updated defence after suspicious transfers surface
The promoter of the controversial LIBRA token, Hayden Mark Davis, has reportedly recharacterised the asset as a speculative “memecoin” in a recent US court filing.
It’s a sharp reversal from earlier claims that the token was intended to support Argentine small businesses.
The change comes as investigators surface a $500,000 crypto transfer from a Davis-linked wallet made on January 30, during his meeting with President Javier Milei at Argentina’s presidential palace.
Blockchain data first reported by La Nación shows the funds were sent to US-based exchange Kraken in the form of USDC. A second transfer of $507,000 followed just 42 minutes later via Bitget.
The same wallet was previously used to offload millions in MELANIA tokens, another memecoin launched by Davis.
More than $3.4 million was moved that day to other wallets, including one controlled by Kelsier Ventures, a firm tied to Davis and his family.
Crypto researcher Fernando Molina, who flagged the transactions earlier this month, said the movement of funds, while not conclusive on its own, warrants further scrutiny given the timing and links between wallets.
The 30-page legal filing, submitted on July 16 to the US District Court for the Southern District of New York and reported by Clarín, argues that LIBRA lacked investment fundamentals and should be classified as a memecoin — a speculative digital asset with no intrinsic value or investor protections.
That position sharply contradicts Davis’s earlier messaging, and that of President Milei, who promoted LIBRA on X on February 14 as a vehicle for economic growth before deleting the post hours later.
The token crashed more than 97% within hours, erasing billions in market capitalisation.
While Argentina’s internal investigation into the LIBRA scandal was shut down in May, the case continues abroad. A US court hearing involving Davis and co-defendants Benjamin Chow and Julian Peh is scheduled for August 19.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at [email protected].
The use of the term 'memecoin' by LIBRA promoter Davis in light of recent suspicious transfers raises doubts about both transparency and long-term viability, underscoring concerns from investors who expected a more substantial project at this stage.
