Hayden Davis, the creator of the now-infamous LIBRA token, is facing a class-action lawsuit. In a recent court filing, he’s taken an interesting defense strategy: he’s calling LIBRA a memecoin.
The LIBRA Debacle
LIBRA’s launch in February 2025 was… eventful. After a promotional boost from Argentine President Javier Milei on X, the token briefly skyrocketed to $5 before crashing to almost nothing. This led to investigations and a lot of negative attention for Davis. President Milei has since distanced himself from the project and even authorized an investigation.
The Lawsuit
A US private investor, Omar Hurlock, filed a class-action lawsuit against Davis and others involved in LIBRA, alleging it was a scam. The lawsuit, filed through Burwick Law, claims that LIBRA was falsely presented as an investment fund for Argentine companies.
Davis’s Defense
In his 30-page defense, Davis denies the allegations. He claims Hurlock lacks evidence of ever buying LIBRA tokens from him or the other developers. He also questions Hurlock’s standing to lead the class-action suit. Crucially, Davis now labels LIBRA a memecoin, a significant shift from its previous description. He argues that because it was a memecoin, no specific promises were made to investors. The defense states that they provided no detailed plans, information, or infrastructure to potential buyers.
The Current Situation
The case is before Judge Jennifer L. Rochon in the Southern District of New York, with a hearing scheduled for August 19th. The outcome will significantly impact the $250 million in frozen assets linked to LIBRA’s profits.
LIBRA’s Current State
At the time of writing, LIBRA is trading at $0.01690, with a total market cap of $4.61 million.