LIBRA Pump-and-Dump Allegations Intensify as Argentina Requests Interpol Action

An Argentine lawyer has formally requested an Interpol Red Notice for Hayden Davis, the co-creator of the controversial LIBRA token. Attorney Gregorio Dalbon filed the request with prosecutor Eduardo Taiano and Judge María Servini, as reported by local media outlet Página 12 on March 12.

Legal Action Against Hayden Davis

Dalbon argues that Davis played a “central role” in creating and promoting LIBRA and poses a “procedural risk” due to his financial resources. According to court filings, the lawyer believes Davis could flee or go into hiding, making an arrest warrant necessary.

An Interpol Red Notice is not an international arrest warrant but serves as a global alert. It requests law enforcement agencies worldwide to locate and provisionally detain an individual. Similar notices have been issued in high-profile crypto cases, including for Do Kwon, the founder of Terraform Labs.

LIBRA’s Rise and Collapse

LIBRA became a national controversy in Argentina after President Javier Milei shared it on social media minutes after its launch. This fueled speculation that his endorsement helped drive LIBRA’s meteoric price rise.

However, the token’s value plummeted soon after, wiping out $4.4 billion in market capitalization. According to blockchain analytics firm Nansen, 86% of LIBRA traders suffered losses, amounting to a combined $251 million.

Critics allege that Davis and other insiders orchestrated a pump-and-dump scheme by holding most of the token’s supply and selling at the peak.

Davis’ Response and Legal Defense

After weeks of silence, Davis recently resurfaced, announcing he had hired a legal team. His defense includes Brian Klein of Waymaker Law, a firm experienced in handling financial crime cases involving the U.S. SEC and Justice Department.

Davis has denied any wrongdoing, stating he “only wanted and sought the success” of LIBRA and had no intention of defrauding investors, Página 12 reported.

Meanwhile, President Milei has also denied involvement, claiming he only “spread the word” about LIBRA rather than formally promoting it.

The case continues to develop as authorities review the request for an Interpol Red Notice against Davis.