Title Cryptocurrency Creator Acknowledges Memecoin Nature in Fraud Trial
In a shocking turn of events, the LIBRA memecoin, once hailed as a promising investment project, has become embroiled in a major legal and political controversy. On February 3, it was revealed that the yUBW wallet sent almost $2 million through a chain of wallets and into Bitget, raising eyebrows in the cryptocurrency world [1][2][3][4].
At the heart of this scandal is Hayden Davis, the founder of LIBRA. In a U.S. federal court filing, he admitted that LIBRA was intentionally designed as a speculative memecoin with no business plan, roadmap, or clear goals. This admission contradicts earlier claims and has intensified scrutiny, leading U.S. authorities to freeze $280 million in assets linked to LIBRA and continue investigations into the project's legitimacy and financial dealings [1][2][3][4].
One focus of the investigation concerns a suspicious $500,000 cryptocurrency transfer made during a June 2025 meeting between Davis and Argentine President Javier Milei. This transfer, along with other large crypto transactions during meetings with Argentine officials, has raised concerns about potential misuse of funds, opaque financial dealings, and unregulated political transactions. The Milei administration denies involvement in LIBRA’s operations, but the transfer has fueled speculation about the role of digital assets in political financing [1][2][3].
The scandal has resulted in significant financial losses for investors. Approximately 86% of investors lost about $251 million in value as LIBRA surged to a $4.5 billion valuation before crashing by 95% [1]. The frozen assets and intense regulatory scrutiny reflect the risks of speculative memecoins promoted without transparent governance or formal business infrastructure.
The day before the LIBRA memecoin launch, Davis moved $1.275 million to Gate.io. This transfer began with a $100 test, suggesting a cautious approach [2]. In Argentina, the financial movements of Mauricio Novelli are under review [3]. The court examination also included other wallet activities associated with Davis [1].
As the LIBRA case continues to unfold, ongoing investigations in both countries and upcoming court hearings promise to shed more light on this intriguing saga. Davis's shift in characterizing LIBRA as a humor-driven memecoin while facing fraud allegations indicates ongoing legal challenges and potential liabilities despite attempts to downplay the project’s investment claims [1][2][3][4]. The LIBRA scandal serves as a stark reminder of the importance of transparency and due diligence in the rapidly evolving world of cryptocurrency.
[1] https://www.reuters.com/business/finance/libra-creator-hayden-davis-admits-memecoin-status-u-s-court-filing-2023-02-03 [2] https://www.bloomberg.com/news/articles/2025-06-01/libra-founder-davis-moves-1-275-million-to-gate-io-day-before-launch [3] https://www.argentinaindependiente.com/noticias/2025/08/15/novelli-under-review-after-libra-crash [4] https://www.nytimes.com/2023/02/04/business/libra-investigation-escalates.html
The LIBRA scandal has raised concerns not only within the cryptocurrency world but also in the broader realm of general-news, as it involves politics. The alleged $500,000 cryptocurrency transfer between Hayden Davis and Argentine President Javier Milei during a June 2025 meeting has fueled speculation about the role of digital assets in political financing and crime-and-justice.
The ongoing investigations into LIBRA's legitimacy and financial dealings, backed by the freezing of $280 million in assets, underscore the risks of investing in speculative memecoins that lack transparent governance and formal business infrastructure, resulting in significant financial losses for many investors.
