Argentina’s LIBRA Crypto Scandal Escalates: Lawyer Seeks U.S. Entrepreneur’s Arrest

The LIBRA cryptocurrency scandal in Argentina deepened this week as lawyer Gregorio Dalbon formally requested the international arrest of Hayden Davis, the alleged key figure behind the token’s collapse. Dalbon submitted the petition to lead prosecutor Eduardo Taiano and Judge María Servini, seeking an Interpol Red Notice to facilitate Davis’s detention and extradition from the U.S.

Dalbon, who previously represented former President Cristina Fernandez in corruption cases, cited Davis as a flight risk due to his financial resources and foreign residence. He emphasized the severe investor losses and Davis’s central role in LIBRA’s promotion. Local media outlets Página12 and Perfil reported the legal move, escalating the case that has entangled President Javier Milei’s administration.

Milei, under scrutiny for promoting the Solana-based meme coin, initially endorsed LIBRA on social media before swiftly deleting his posts. He later claimed he misunderstood its purpose, believing it was a private business initiative. The token skyrocketed to a $4 billion market cap before plummeting, triggering lawsuits and fraud allegations. Former Argentine Central Bank head Claudio Lozano joined legal actions against Milei, further intensifying the controversy.

Earlier this month, Taiano froze approximately $100 million in crypto assets linked to the case. If approved, the Red Notice would prompt Interpol’s 195 member countries to locate and provisionally detain Davis pending extradition. However, arrests based on Red Notices remain at the discretion of each country’s legal system.

The LIBRA debacle continues to shake Argentina’s political and financial landscape, raising concerns over crypto regulation and investor protections amid mounting legal battles.