Court filings unsealed this week show Hayden Davis conceding that the LIBRA token was conceived and marketed purely as a memecoin, lacking any formal business plan or investment roadmap.
Davis Tells Court LIBRA Lacks Formal Business Plan
The entrepreneur’s statement, filed in the Southern District of New York on 25 July, stresses that LIBRA was “a collectible meme token” rather than a security or investment scheme. Prosecutors allege that promotional material framed the coin as an equity‑like stake, contributing to the decision to freeze approximately $280 million in related assets earlier this year.
Legal observers note that Davis’s admission could shift the burden of proof toward demonstrating misrepresentation rather than unlawful securities issuance. Should the court accept the memecoin characterization, investors may face a longer path to restitution under consumer‑protection rather than securities statutes.
Blockchain Analysis Traces $500,000 USDC Transfer During Presidential Meeting
Chain‑forensics firm Aletheia Labs provided evidence that a wallet tagged to Davis transferred 499,129 USDC to Kraken at 15:37 UTC on 30 January. The timestamp aligns with official Casa Rosada schedules showing Davis in a closed‑door session with President Javier Milei to “discuss decentralised technologies.” Investigators contend that the movement of funds immediately before LIBRA’s February marketing push indicates possible foreknowledge of price impact.
Judge Marina Torres has set an evidentiary hearing for 19 August, when attorneys will argue whether the frozen assets should remain under restraint pending trial. Market participants are watching closely, as the ruling may clarify how U.S. courts classify memecoins tied to high‑profile political endorsements.