Nikolas Sargeant
The controversial LIBRA cryptocurrency scandal has escalated as prominent Argentine lawyer Gregorio Dalbon has formally requested international intervention to apprehend the token's co-creator, Hayden Davis.
Dalbon filed a petition on Tuesday with prosecutor Eduardo Taiano and Judge María Servini, urging them to issue an Interpol Red Notice that would facilitate Davis's arrest and extradition from the United States to face charges in Argentina.
The cryptocurrency at the center of this legal battle, LIBRA, initially gained prominence through its association with Argentine President Javier Milei in February. The memecoin rapidly climbed to a $2 billion market capitalization before experiencing a catastrophic 90% crash, resulting in approximately $250 million in investor losses.
According to Dalbon, Davis strategically leveraged political connections to generate speculative enthusiasm for the token before its dramatic collapse, making him a central figure in the financial scandal.
Digital Asset Freeze Implemented as Investigation Intensifies
Argentine authorities have already taken significant steps to contain the financial damage, freezing digital wallets connected to LIBRA to prevent further fund transfers. Prosecutors have also initiated requests for transaction records from international cryptocurrency exchanges to trace the missing investments.
In his filing, Dalbon emphasized that Davis presents a substantial flight risk due to his considerable financial resources, which could enable him to evade legal proceedings. The lawyer contends that Davis deliberately exploited alleged connections to President Javier Milei and his sister, Karina Milei, to bolster investor confidence before the token's value plummeted.
International Legal Cooperation Sought as Political Implications Grow
The case has gained additional complexity due to Davis's documented meeting with President Milei at Casa Rosada on January 30. Following the token's collapse, Davis claimed he had launched LIBRA with Milei's endorsement, but later shifted blame to the government, alleging that officials initially supported the project before withdrawing their backing, triggering market panic.
President Milei has acknowledged meeting with LIBRA's developers but has denied promoting it as an investment vehicle, maintaining that his comments were intended to highlight cryptocurrency's potential role in supporting Argentine entrepreneurship.
Dalbon's request for an Interpol Red Notice represents a significant escalation in the investigation. While it remains uncertain whether Interpol will proceed with the request, the international dimensions of this scandal continue to unfold, with potential implications for both Argentina's cryptocurrency regulations and its political landscape.
