Hayden Davis, creator of the LIBRA token, has now described the crypto project as a memecoin in a recent court filing as part of a legal strategy to counter a class-action lawsuit. The American crypto entrepreneur and marketer continues to draw negative attention and remains under investigation following the highly questionable launch and crash of LIBRA in February 2025.
Davis’ Clash With US Private Investor Forces LIBRA Memecoin Admission – Report
The LIBRA project gained much popularity following public promotion by Argentine President Javier Milei on X, on February 14, 2025. The crypto token’s value soared to $5 in a few hours following its launch before plummeting to nearly $0. Since then, the nation’s leader has distanced himself from the crypto project while even authorizing an investigation into the event by the nation’s anti-corruption office.
According to local Argentine media Clarin, Omar Hurlock, a US private investor, through American law firm Burwick Law, has since initiated a class-action lawsuit against Hayden Davis and other persons behind LIBRA, including Benjamin Chow, co-founder of the Meteora platform, and Julian Peh, head of Kip Protocol.
In a 30-page defence against Hurlock’s claims of running a scam, Hayden Davis states the US investor has no evidence to back the complaints of ever purchasing tokens from him or other developers of the crypto project. In particular, Davis attacks Hurlock’s credibility to lead a class action in a case he is not a direct victim.
Furthermore, the crypto entrepreneur also publicly refers to LIBRA as a memecoin for the first time since the incident in February. Before this statement, the cryptocurrency had been previously described by all parties involved as an investment fund targeted at financing Argentine companies.
In ascribing memecoin status to LIBRA, the defendant emphasizes the speculative nature of this token while also claiming no promises were made to prospective investors. A statement from the brief reads:
Defendants provided no plans, details, or infrastructure to potential purchasers of the memecoin, nor did they provide detailed disclosures or tokenomic distribution information regarding how the funds raised would be allocated to fulfill the [allegedly] promised economic initiatives
The case is presently filed at the District Court for the Southern District of New York under Judge Jennifer L. Rochon and is scheduled for a hearing on August 19. The outcome of this lawsuit is also expected to influence the status of $250 million in frozen assets, which are linked to profits from the LIBRA project.
Price Overview
At press time, LIBRA trades at $0.01690 with its total market cap valued at $4.61 million.
Featured image from The Economist, chart from Tradingview
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