- Argentine lawyer Gregorio Dalbon has requested an Interpol Red Notice for Hayden Davis.
- The LIBRA token collapse has sparked legal action and political controversy.
- Prosecutor Eduardo Taiano previously froze $100 million in crypto linked to the case.
The LIBRA crypto scandal has entered a new phase as Argentine lawyer Gregorio Dalbon formally requested an Interpol Red Notice for Hayden Davis, the alleged central figure behind the token’s collapse.
The petition, submitted Tuesday to prosecutor Eduardo Taiano and Judge María Servini, demands Davis’ international detention and extradition from the U.S
Dalbon argues that Davis poses a flight risk due to his financial resources and foreign residence. The request follows prosecutor Eduardo Taiano’s move earlier this month to freeze approximately $110 million in crypto tied to the case.
Retail Investors Lose $251 Million: Market Manipulation Alleged
Blockchain analysis firm Nansen reported that retail investors suffered devastating losses of $251 million when the LIBRA token collapsed. Meanwhile, wallets associated with Davis and another key figure, Kelsier, siphoned off significant profits before the token’s downfall.
Blockchain investigator Bubblemaps uncovered evidence of market manipulation, including the use of “sniping”—a tactic where bots buy tokens early to control liquidity.
Related: Argentina Crypto Watchdog Sidesteps LIBRA Mess, Focuses on New Rules
Davis admitted to these tactics, claiming they would stabilize the market and that he would reinvest liquidity once President Javier Milei resumed promoting the token. However, the plan backfired, leaving retail investors with heavy losses while insiders made substantial gains.
Political Repercussions and Wider Investigations
The LIBRA token’s collapse has created political controversy, especially after President Milei publicly endorsed the project before its value dropped sharply.
Investigations have also linked the LIBRA team to other controversial crypto projects. Reports indicate connections between LIBRA insiders and MELANIA, another digital asset.
Investigations also suggest that the team discussed launching a similar token with the Nigerian government. This raises concerns about potential recurring exploitative crypto ventures across multiple countries.
Related: Argentina’s Crypto President in Trouble: Milei Charged Over LIBRA Token Fail
The fallout has also led to major shake-ups within the broader crypto industry. Ben Chow, co-founder of decentralized finance platform Meteora, recently resigned amid the controversy.
What Next?
If Dalbon’s request for a Red Notice is approved, Interpol will distribute it to its 195 member countries. Although a Red Notice does not compel arrests, it notifies law enforcement agencies globally that Davis is wanted for extradition.
Meanwhile, the LIBRA token continues to decline in value. As of this press time, the token is trading at $0.0637, down by 3.6% in the past 24 hours and 48% in the past two weeks.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
