Hayden Davis Claims LIBRA Token Promotion Was Global, Not New York-Specific
Hayden Davis, the creator of the controversial LIBRA token, has asked a New York federal court to dismiss a class-action lawsuit filed against him, arguing that the court lacks personal jurisdiction. In his motion filed Wednesday, Davis asserted that the LIBRA offering was conducted globally and was not directed specifically at New York residents or markets.
Davis, a co-founder of Kelsier Ventures, stated that he does not reside in New York, has no business operations in the state, and was not physically present in New York when any of the alleged misconduct occurred. He emphasized that he made no intentional efforts to advertise to or solicit investors from New York.
LIBRA Token Collapse and Investor Allegations
The lawsuit stems from the dramatic rise and fall of the LIBRA token, which lost 94% of its value in February after reaching a peak market cap of $4.6 billion. The token’s rapid ascent was partly driven by public praise from Argentine President Javier Milei, who later faced political backlash over the endorsement.
Plaintiffs, led by investor Omar Hurlock, claim that Davis and his brothers, along with Kelsier Ventures, misled investors by suggesting the token was designed to support Argentina’s economy, while allegedly siphoning over $100 million through liquidity pools. Several blockchain companies and executives, including Meteora and KIP Protocol, were also named in the suit.
Davis Argues Due Process Violation
In his motion, Davis contends that allowing the lawsuit to proceed in New York would violate constitutional due process. He maintains that any promotional materials or public statements attributed to him were not targeted at New York and that the LIBRA website was a passive platform, focused solely on attracting Argentine businesses.
“The complaint does not allege Davis specifically directed any statements toward New York or its residents,” the filing reads.
Frozen Assets and Ongoing Legal Battle
In May, the class plaintiffs secured a temporary order freezing $57.65 million in USDC allegedly linked to the LIBRA project. However, Davis has requested the case be dismissed without prejudice, which would allow the plaintiffs to refile the suit in another jurisdiction.
The court must now decide whether jurisdiction in New York is appropriate, a decision that could shape future crypto-related litigation in the U.S.
Disclaimer
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