Hayden Davis, co-founder of investment firm Kelsier Ventures and a key figure behind the LIBRA cryptocurrency project, is seeking to dismiss a class action lawsuit filed against him in New York. Plaintiffs accuse Davis of deceiving investors and misappropriating over $100 million, despite promises that the project would support Argentina’s economy.

On Thursday, Davis filed a motion in federal court to dismiss the case, arguing that the court lacks jurisdiction. “Davis does not reside in New York, does not conduct business in New York, and was not physically present in New York at the time of the alleged wrongdoing,” his legal team wrote. They further emphasized that he made no effort to target the New York market with the global offering of the $LIBRA meme coin.

Project Allegedly Originated in Argentina, Not Tied to New York

In his defense, Davis insisted that the LIBRA initiative has no direct link to New York. “The project was developed in Argentina,” the court filing stated, explaining that it was marketed globally, not to any specific jurisdiction. Davis also described the project's website as “passive,” noting that it merely collects business inquiries from within Argentina and does not actively offer services to users in other states.

However, plaintiffs argue that Davis and his brothers — Gideon and Thomas, also co-founders of Kelsier Ventures — launched LIBRA under false pretenses, claiming it would strengthen the Argentine economy. In reality, the lawsuit alleges the true intent was to drain funds from unilateral liquidity pools and move over $100 million into wallets controlled by the Davis family and their associates.

The lawsuit also accuses Davis of making public statements designed to build trust in the token, including promises to buy back certain LIBRA tokens to stabilize their value. Davis refutes this claim, asserting those statements were not directed specifically at New York residents and that he was not physically present in New York when the statements were made.

Millions Frozen, Market Cap Collapses

In May, plaintiffs secured a preliminary injunction ordering Circle, issuer of the USDC stablecoin, to freeze assets worth approximately $57.65 million allegedly tied to the LIBRA project. At its peak, LIBRA had a market capitalization of $4.6 billion before crashing by 94%, leaving thousands of investors at a loss.

The class action lawsuit also names other entities allegedly connected to the LIBRA operation, including blockchain firm KIP Protocol and its CEO Julian Peh, as well as crypto platform Meteora and its co-founder Benjamin Chow.

Suspicious Transfers and a Meeting with Argentina’s President

Adding another layer of intrigue, blockchain forensic analyst Fernando Molina testified before Congress on Thursday, detailing suspicious wallet transfers linked to Davis that coincided with critical moments in the LIBRA scandal and Davis’s political ties in Argentina.

For instance, on January 30 — just 40 minutes after a photo of Davis and Argentine President Javier Milei at Casa Rosada was posted — Davis transferred $507,500 through the Bitget exchange. Another transfer occurred on February 13, the day before LIBRA’s launch, when Davis sent $1.275 million to a platform he rarely used.

More alarming was a $1.991 million transfer on February 3 to a separate wallet. The following day, trader Mauricio Novelli, reportedly Davis’s link to President Milei, opened two safety deposit boxes at Banco Galicia’s branch in Martínez. Molina testified that these boxes were later emptied by Davis’s mother and sister.




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