Have you heard about this new crypto scandal? The story is quite loud: Interpol has requested a "Red Notice" for the arrest of Hayden Davis, who is considered a key figure in the collapse of the LIBRA memcoin. This means that he can be detained in any country while the issue of extradition is being resolved.
The fact is that Argentine lawyer Gregorio Dalbon, known for representing the interests of former President Cristina Fernandez de Kirchner, has submitted an official appeal to Interpol. He, along with Chief Prosecutor Eduardo Tayano and Judge Maria Servini, argues that Davis may go into hiding because of his financial resources and connections abroad. And given that thousands of investors have lost money, the authorities are demanding an immediate investigation.
So far, LIBRA's price continues to fall, and the situation is getting worse. Analysts from Nansen found out that insiders managed to earn millions while ordinary investors were losing money. Moreover, blockchain researchers have found evidence that the market could be artificially inflated with the help of bots, and then abruptly withdraw funds. Davis does not deny that he used such schemes, but claims that it allegedly helped to avoid instant collapse. However, in the end, it was he and his entourage who remained in the black, while ordinary investors remained in the red.
Even more interesting is that another person is involved in this case – a certain Kelsier, who could also participate in the withdrawal of funds. Moreover, the LIBRA team has already been seen in other dubious crypto projects, such as MELANIA. The investigation is currently ongoing, and information has appeared in the press that insiders were negotiating with Nigerian officials to launch a new scheme. It turns out that such frauds can occur in different countries, and this raises serious concerns among regulators.
At the moment, the Argentine authorities have frozen millions of dollars related to LIBRA, and the crypto industry as a whole has felt the consequences of this scandal. For example, Ben Chow, the co-founder of the Meteora platform, even resigned, which only confirms the scale of the upheaval in the industry.
Now the main thing is to wait for the decision of Interpol. If the "Red Notice" is approved, Davis will be put on the international wanted list. This does not mean that he will be arrested immediately, but police around the world will receive a signal that he is wanted. Meanwhile, LIBRA continues to plummet, and investors are wondering what will happen next.
Do you think the authorities will be able to bring this case to an end, or will Davis and his associates be able to escape punishment?
