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.
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.
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.”
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.
Investor Omar Hurlock claims LIBRA misled buyers, but Davis denies it was meant for investment or had real infrastructure.
Authorities froze the funds over concerns about improper handling and lack of transparency in the project.
The hearing is scheduled for August 19, 2025, and will determine the future of the frozen funds and potential legal actions.
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