The LIBRA cryptocurrency scandal, which has rattled Argentina’s political and financial landscape, escalated this week as Argentine lawyer Gregorio Dalbon formally requested an international arrest warrant for crypto entrepreneur Hayden Davis.
Dalbon submitted a petition to lead prosecutor Eduardo Taiano and Judge María Servini, urging them to seek an Interpol Red Notice for Davis, the alleged mastermind behind the LIBRA token’s collapse.
The petition, filed Tuesday, alleges that Davis poses a significant flight risk due to his vast financial resources and residence outside Argentina. Dalbon cited the magnitude of investor losses as justification for immediate international action.
Davis, linked to the token’s promotion, has yet to respond to the allegations. His legal team remains silent, and a request for comment from Decrypt has gone unanswered.
LIBRA’s Fallout and Political Implications
The LIBRA scandal has entangled President Javier Milei in a political firestorm after he publicly endorsed the Solana-based token before its dramatic crash. Milei had initially promoted LIBRA as an investment opportunity but swiftly deleted his posts, later claiming he misunderstood its purpose.
Legal actions followed. Earlier this month, Taiano moved to freeze approximately $100 million in cryptocurrency tied to the case. Investigators scrutinise the connections between Davis, Milei, and Milei’s inner circle, including Karina Milei.
Dalbon’s legal filing explicitly links Davis to the scheme, asserting that his company, Kelsier Ventures, played a pivotal role in LIBRA’s creation. A February statement from Kelsier Ventures contradicted Milei’s disavowal, stating that the president had actively promoted the token before abruptly withdrawing his support.
Interpol Red Notice and Legal Consequences
Dalbon’s request urges authorities to use an Interpol Red Notice to detain Davis and initiate extradition proceedings. While not an international arrest warrant, a Red Notice signals law enforcement agencies worldwide to locate and provisionally arrest a suspect pending extradition.
Red Notices are typically issued for serious financial crimes, fraud, and other major offenses. If granted, Davis’ arrest request would be circulated among Interpol’s 195 member countries, leaving it up to individual governments to determine whether to act.
Davis, who has remained largely out of public view since LIBRA’s collapse, recently resurfaced, stating that he intends to fight the charges in Judge Servini’s court. He has reportedly assembled a new legal team, including high-profile attorneys Marcos Salt and Natalia Sergi, though their engagement has not been finalized.
Davis’ Legal Defense and High-Profile Representation
Davis has retained Waymaker Law, a Los Angeles-based firm specializing in financial crimes, regulatory disputes, and cryptocurrency fraud. His lead counsel, Brian Klein, is known for defending clients in high-stakes cases involving the U.S. Department of Justice and the Securities and Exchange Commission (SEC).
Davis maintains his innocence, arguing that he sought only to develop LIBRA as a successful cryptocurrency. He claims that the financial losses were unforeseen and he has access to the funds needed to reimburse affected investors. His defense strategy suggests an impending battle over jurisdiction and potential extradition.
Beyond the criminal complaint, Davis faces several civil lawsuits filed by investors and legal entities. The first complaint was lodged by economist Claudio Lozano, attorneys Jonatan Baldiviezo and Marcos Zelaya, and engineer María Eva Koutsovitis.
Additional complaints have followed from attorney Gregorio Dalbon, activist Juan Grabois, Congressman Itaí Hagman, and members of the Coalición Cívica.
Complicating matters, the case is being pursued in multiple jurisdictions. While Judge María Servini is handling the primary proceedings, a parallel case has emerged in San Isidro under Judge Sandra Arroyo Salgado, leading to disputes over jurisdiction.
Former judge Guillermo Tiscornia has also filed a related complaint in the Economic Crimes Court before Judge Marcelo Aguinsky, further muddying legal proceedings.
As legal battles unfold, victims of the LIBRA collapse are coming forward. Martín Romeo, a cryptocurrency expert who claims to have been personally defrauded, has been granted plaintiff status in Judge Arroyo Salgado’s court.
Romeo, a former supporter of Milei, alleges that he lost significant funds after trusting the president’s endorsement.
Romeo initially sought to join the case under Judge Servini but was denied due to uncertainty over the exact nature of the allegations—whether fraud or another financial crime.
His testimony, scheduled for today, could provide further insight into LIBRA’s financial impact and the potential legal repercussions for Davis and Milei’s administration.
