The LIBRA scandal has entered a new phase after Argentine lawyer Gregorio Dalbon pushed for the international detention of the token’s co-creator Hayden Davis.

Dalbon reportedly filed a request on Tuesday with prosecutor Eduardo Taiano and Judge María Servini. He urged them to issue an Interpol Red Notice for Davis’s arrest and extradition from the US.

At the center of the controversy is LIBRA, a memecoin promoted by Argentine President Javier Milei in February. The token soared to a $2b market cap before crashing over 90%. Investors suffered an estimated $250m in losses.

Dalbon argues that Davis played a key role in the token’s rise and collapse, using political connections to fuel speculative hype before the sudden downfall.

Authorities Clamp Down on LIBRA’s Financial Trail

Authorities have already frozen digital wallets linked to LIBRA, blocking further transfers. Prosecutors are also seeking transaction records from foreign crypto exchanges to track missing funds. Dalbon argued that Davis poses a flight risk due to his financial resources, making it easier for him to evade justice.

The LIBRA token’s rise was fueled by alleged ties to President Javier Milei and his sister, Karina Milei. Dalbon claims Davis used political connections to boost investor confidence before the token collapsed.

Argentina President Milei promoted a little-known crypto ‘LIBRA’ on X, which rapidly surged to a market capitalization of about $4.5 billion before collapsing.#Argentina #LIBRACoin #JavierMileihttps://t.co/Lxb79k7OlI

— Cryptonews.com (@cryptonews) February 17, 2025

Will Interpol Step In? LIBRA Investigation Gains Global Attention

Davis, who met President Milei at Casa Rosada on Jan. 30, later claimed he acted on Milei’s behalf in launching LIBRA. However, after the project failed, he blamed the government, alleging officials first endorsed the token but later withdrew support, triggering panic.

Milei has earlier admitted to meeting LIBRA’s creators but denied promoting it as an investment, stating his comments were meant to highlight crypto’s role in supporting Argentine entrepreneurs.

Dalbon’s request, if granted, would mark a major escalation in the case. Whether Interpol moves forward remains to be seen, but the scandal is far from over.

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