- Hayden Davis admitted in a U.S. court filing that LIBRA was a memecoin, not an investment, with no detailed business or economic plan.
- Blockchain records show Davis-linked wallets moved $500K USDC during a January 30 meeting with President Milei at Casa Rosada in Buenos Aires.
- A federal hearing set for August 19 will address the future of $280 million in frozen assets tied to Davis and co-defendants in the LIBRA case.
Crypto entrepreneur Hayden Davis has officially described the LIBRA token as a memecoin in a recent U.S. court filing. This marks a change in legal strategy as Davis contests accusations linked to a $280 million asset freeze stemming from the project.
Davis Admits LIBRA Is a Memecoin in Court Filing
In a newly filed 30-page legal document submitted to Federal Judge Jennifer L. Rochon of the Southern District of New York, Hayden Davis’s defense stated that the LIBRA token was never presented as an investment opportunity. Instead, the document notes, “Defendants provided no plans, details, or infrastructure to potential purchasers of the memecoin, nor did they provide detailed disclosures or tokenomic distribution information regarding how the funds raised would be allocated to fulfill the [allegedly] promised economic initiatives.”
The filing went further to argue that, “Memecoins are not investments and have no intrinsic value, but rather are unsecured and unsecured affinity and collectible products whose market is marked by extreme volatility.” This public admission deviates from earlier portrayals of the token and reinforces Davis’s position that LIBRA was a speculative product without any planned utility.
The defense also took aim at the plaintiff, Omar Hurlock, asserting that he failed to show personal damages or even confirm purchasing LIBRA from Davis. According to the defense, “The plaintiff doesn’t even prove he was a direct victim. He’s attempting to lead a class action lawsuit without demonstrating his own harm.”
Plaintiff’s Case Faces Pushback Over Jurisdiction and Standing
Omar Hurlock filed the case alleging he and other investors suffered losses after LIBRA’s brief surge and collapse. His legal team requested a formal hearing through Discover to compel Davis and co-defendant Benjamin Chow to answer further questions. Judge Rochon, however, denied the motion.
In response, Davis’s team moved to shift the legal venue, stating the current New York jurisdiction was inappropriate. They proposed transferring the case to Argentina or Texas. In the same filing, Davis’s lawyers criticized Hurlock’s counsel, saying he had hired what they called a “crypto ambulance chaser”—a reference to attorney Max Burwick, who is known for representing investors in failed crypto projects and publicly solicits clients through his X account.
Contradictions Emerge Between Davis and Milei’s Past Statements
This new legal stance appears to directly contradict public remarks previously made by Argentine President Javier Milei. In a post dated February 14, Milei had described the LIBRA initiative as a means to “incentivize the growth of the Argentine economy by funding small businesses and Argentine entrepreneurs.” The tweet has since been deleted.
After the backlash, Milei dissociated herself with the project by saying that she was not conversant with the project. Davis acknowledged in court that LIBRA was completely speculative, and this makes the marketing message when the initiative was announced questionable, as it involved the promises of famous faces.
Wallet Activity During Presidential Meeting Draws Attention
Scrutiny over Davis’s financial activity increased after blockchain data revealed a $499,000 USDC transaction from a wallet tied to Davis. According to Argentine outlet La Nación, the transaction was executed on January 30 at 2:00:35 p.m., aligning with the time Davis was reportedly meeting President Milei and businessman Mauricio Novelli at Casa Rosada to discuss blockchain and decentralized technologies.
Later that afternoon, Milei posted a photo with Davis on social media, confirming their meeting. Just 42 minutes after the image was published, another wallet linked to Davis transferred $507,000 via the Bitget exchange. Crypto forensic analyst Fernando Molina tracked the movements and confirmed that the wallets involved were also active during Davis’s MELANIA token project.
The wallet labeled yUBW is linked through transaction history to Davis’s Kelsier Ventures wallet ending in 9qEV. This same wallet received $4.9 million shortly after the launch of the MELANIA token on January 19.
Frozen Assets and August Court Date Set to Shape Legal Outcome
The key focus of the case remains the $280 million in frozen assets believed to be connected to the rapid profits earned during the LIBRA token’s launch. Alongside Davis, the court has named Benjamin Chow, co-founder of Meteora, and Julian Peh, head of Kip Protocol, as co-defendants.
The court has set a hearing for August 19 in New York, where Judge Rochon will consider whether to maintain the asset freeze and if the venue is appropriate. That decision may hinge on Davis’s newly submitted defense and the details of the token’s promotion, wallet movements, and classification.
Davis’s decision to now publicly label LIBRA a memecoin represents a legal turning point, especially as it contradicts prior claims around economic development and small business support. The deleted posts and changing narratives, under the scrutiny of blockchain information, the future hearing can be the turning point of another chapter in the case.
