A new court filing in the U.S. has revealed a surprising twist in the LIBRA token case. Crypto entrepreneur Hayden Davis now says the token was just a memecoin, not a serious project. But this comes after it was heavily promoted online and even discussed with Argentina’s President.
At the same time, large money transfers were made during Davis’s meeting with top officials. With $280 million frozen, a court hearing is set for August 19.
Davis Calls LIBRA a “Memecoin,” Not an Investment
Davis made this statement in a recent filing with a U.S. federal court in New York, where he’s facing a legal case tied to $280 million in frozen assets. Meanwhile, Davis’s legal team claimed that LIBRA was never meant to be a real investment. He said it had no business plan, no roadmap, and no clear goals.
Instead, Davis described LIBRA as a memecoin—a type of token known for being unpredictable, risky, and mostly driven by social media hype.
This statement is very different from how the project was originally presented. When LIBRA first launched, it was shared widely on social media and supported by President Milei. In a now-deleted post from February, Milei said LIBRA would help support small businesses in Argentina.
Davis is now clearly stepping back from those early promises.
No Real Plan Behind the Token
Davis’s team also said in court that memecoins are not real investments. They are risky and have no fixed value. This new statement is part of Davis’s strategy to defend himself against a lawsuit from investor Omar Hurlock.
Hurlock says he lost money in the LIBRA project. But Davis argues that Hurlock can’t prove he even bought the token. He also said Hurlock’s lawyer is only chasing failed crypto projects for money.
Suspicious Money Transfers Raise Eyebrows
While all this was happening, money was moving. On January 30, when Davis met President Milei, one of his wallets sent $499,000 in crypto to the Kraken exchange. Just 42 minutes after their meeting photo was posted, another wallet sent $507,000 using Bitget.
These wallets are also linked to another token Davis launched, MELANIA, based on U.S. First Lady Melania Trump.
Court Hearing Set for August 19
The court hearing on August 19 could reveal more about the LIBRA token, the money trails, and its links to top political figures. However, Davis now wants the case to be moved out of New York, possibly to Argentina or Texas.
But until then, $280 million in crypto remains frozen.
