Davis Drops Bombshell: ’LIBRA Was Never Serious’ as Legal Reversal Follows $280M Asset Freeze

In a stunning reversal, Davis claims LIBRA was 'never a serious project'—just as regulators lock down $280M in assets. Was this always a regulatory smokescreen?

Legal whiplash meets crypto chaos

The about-face comes amid escalating scrutiny, with Davis now distancing himself from the embattled project. Sources suggest the $280M freeze forced his hand—nothing focuses the mind like frozen funds.

Finance's favorite circus continues

Another day, another crypto project crumbling under its own contradictions. At least the lawyers are getting paid.

Crypto entrepreneur Hayden Davis, connected to LIBRA (a cryptocurrency), changed one of his arguments in the legal case of the LIBRA scam. Davis told the U.S. court that the project was a memecoin, made for fun and not a serious business investment. This statement completely changed the earlier sentiment of LIBRA. 

Is Hayden Davis Trying to Escape Judicial Investment?

According to recent reports, Davis told the US court LIBRA project is a memecoin, meaning it was made for fun. He claims that the project was not meant for serious investment, denying the claims of the private investor, Omar Hurlock. 

Hurlock’s lawyer requested a proper investigation to scrutinize the involvement of Davis and Benjamin Chow in the LIBRA scam. However, the Federal Judge Jennifer L. Rochon of the Southern District of New York refused the request. 

According to Argentine media Clarín, crypto entrepreneur Hayden Davis has admitted in a U.S. court filing that the LIBRA project is a memecoin, denying it was an investment with a business plan. On January 30, during a meeting with President Javier Milei, Davis-linked wallets…

Davis’s Defence Acknowledges LIBRA As Memecoin 

Davis argued that they never presented a business plan that WOULD have a strong infrastructure for users to invest in. He emphasized that the opposite party failed to provide any evidence in their defence. His defence reiterated that memecoins are not investments and nor do they have intrinsic value. 

Davis stated, “Defendants provided no plans, details, or infrastructure to potential purchasers of the memecoin, nor did they provide detailed disclosures or tokenomic distribution information regarding how the raised funds would be allocated to fulfill the [allegedly] promised economic initiatives.”

Why Does it Matter?

Davis’s statement that LIBRA is just a memcoin comes at a time when thousands of people are awaiting their assets. Amid the dispute between the two parties, authorities froze $280 million connected to LIBRA because they suspected that the money was not handled properly. 

The fate of these funds will be decided at a hearing scheduled for August 19, 2025, in the New York Court. Both parties, with their defendants, must be present. This outcome could also affect crypto laws and determine stricter laws for the upcoming digital currencies.