Renowned Argentine lawyer Gregorio Dalbon has formally requested Interpol to issue a red notice against entrepreneur Hayden Davis, accusing him of playing a key role in the collapse of the Libra cryptocurrency.
Dalbon alleges that Davis was instrumental in promoting and managing the Libra token, which ultimately resulted in millions of dollars in investor losses.
Authorities have already frozen approximately $100 million in crypto assets linked to the case as part of an ongoing investigation into fraudulent activities.
Despite the seriousness of the allegations, Davis and his legal team have yet to respond to the claims or to Dalbon’s petition for his arrest.
Legal Petition Cites Flight Risk and Investor Losses
Dalbon’s petition, submitted to Argentine prosecutors and Interpol, argues that Davis represents a significant flight risk due to his substantial financial resources and residence outside Argentina.
According to documents cited by local media, Dalbon believes Davis’s continued freedom poses a procedural threat, as he could evade justice given the scale of the financial scandal.
The petition stresses Davis’s alleged central role in the creation and aggressive promotion of Libra, highlighting the devastating impact of its collapse on investors.
Dalbon maintains that without immediate international cooperation, Davis may escape accountability, making his extradition a priority for authorities.
Also Read: Pump.fun Founder Calls For Stricter Guardrails On Token Launchpads Following LIBRA Memecoin Fallout
Calls for International Detention and Extradition Intensify
In an effort to ensure Davis faces trial, Dalbon has urged authorities to proceed with an international detention order alongside an Interpol red notice.
The action would allow law enforcement agencies across multiple countries to locate and detain Davis, paving the way for his extradition to Argentina.
Reports from Argentine news outlets such as Página12 emphasize the urgency of the case, as prosecutors fear that delays in legal proceedings could allow Davis to conceal assets or avoid prosecution altogether.
The case has drawn widespread attention, underscoring the broader challenges of enforcing justice in international cryptocurrency fraud cases.
Libra Token Collapse Exposes Massive Investor Losses and Regulatory Gaps
The downfall of the Libra token has reignited debates surrounding cryptocurrency regulations and investor protection.
Legal expert Wassielawyer revealed that 74,000 traders collectively lost $286 million during the crash, with at least 25 individuals losing over $1 million each.
The crisis was exacerbated when Argentine President Javier Milei distanced himself from Libra, triggering a mass selloff and a liquidity crisis that led to the token’s collapse.
Prosecutor Eduardo Taiano has classified the case as involving fraud, bribery, and influence peddling, further requesting international cooperation to obtain transaction records from global crypto exchanges.
Expanding Legal Fallout and Industry Consequences
The Libra controversy has not only resulted in legal action against Hayden Davis but has also cast a spotlight on the broader implications for the cryptocurrency industry.
Kelsier Ventures, the company behind the Libra memecoin, is now under intense scrutiny, with U.S. law firms such as Bruwick Law preparing class-action lawsuits.
Additionally, the fallout from the scandal has forced prominent industry figures to resign, including Ben Chow, co-founder of Meteora, who stepped down amid allegations of mismanagement related to Libra.
As investigations continue, the case serves as a cautionary tale about the risks associated with unregulated cryptocurrency ventures and the potential for large-scale financial misconduct.