LIBRA Memecoin Scandal: Founder Davis Rebrands Token as Pure Meme Amid Legal Battle

Hayden Davis, the embattled founder of LIBRA token, has dramatically repositioned the project in a New York federal court filing—declaring it a memecoin with no intrinsic value. This contradicts earlier promotions featuring endorsements from Argentina's President Javier Milei, who claimed the token WOULD empower small businesses. The about-face comes as $280 million in assets remain frozen ahead of an August 19 hearing.

Court documents reveal Davis' legal team now describes LIBRA as lacking any roadmap or business plan, framing it instead as a social media-driven speculative asset. The disclosure follows scrutiny of suspicious transactions during Davis' high-profile meetings with Argentine officials. Once touted as a serious financial instrument, LIBRA's reclassification as a meme asset underscores the regulatory tightrope walk for controversial crypto projects.