Crypto entrepreneur Hayden Davis has filed a new brief in the case over the launch of the $LIBRA token, changing the tact of the case in his legal battle with the U.S. The token initially jumped in value when Argentine President Javier Milei promoted it on social media, but it immediately dropped in price, causing alarm among investors.
Omar Hurlock, a privately owned investor, is leading this case and is demanding specific answers about their involvement in the launch of the token against Davis and co-defendant Benjamin Chow. Hurlock had recently sought Judge Rochon to obtain additional discovery via Discover, which was denied. In the meantime, a trial set to take place on August 19 will decide the destiny of $280 million in funds that are confiscated over its relations to profits made with the release of the token.
Davis’s Legal Filing Rejects Fraud Allegations
Davis states in a 30-page court filing that Hurlock has not provided evidence of personal harm or that he has actually been affected by the $LIBRA token. Davis claims that the legal team of Hurlock has no adequate grounds to offer a class action as the investor lacks one form of transactional association with the defendants.
Davis was the first person to formally refer to the $LIBRA project as a memecoin, as he recognized it as an ungrounded digital asset whose value was speculative. According to the defense, no business plan, infrastructure or tokenomics was disclosed to potential buyers, making the project a non-investment product with a volatile nature.
Money Transfers and Connections to Political Figures Under Review
According to the government records, Davis visited Casa Rosada in Argentina along with President Javier Milei and businessman Mauricio Novelli on January 30. Meanwhile, blockchain analysts found a $499,000 USDC transfer out of a wallet associated with Davis to the Kraken exchange.
The second transaction, for $507,000, was later detected in another platform. These sales are made questionable by being closely associated with the meeting and potentially having a relationship with the $MELANIA token, a different project that Davis was involved with.
