People always complain about the technicalities of legal processes, but they can sometimes be an advantage. They have certainly become a potential advantage for Hayden Davis, the creator of the LIBRA token, and he intends to maximize it.
Hayden Davis, the controversial creator behind the equally controversial LIBRA token, is now seeking to have a New York class action lawsuit against him dismissed. On what grounds, you ask? Well, according to Davis, the court lacks jurisdiction to preside over his case.
If you’re wondering what case we’re talking about, it started some time ago from the dramatic, almost cinematic collapse of the LIBRA token. The token saw a monumental 94% fall from its peak $4.6 billion market cap earlier this year. Tokens falling and rising is nothing new, but this one got a lot of special attention after President Javier Milei of Argentina praised it on social media. That singular action contributed in no small way to the token’s impressive rise before it took a great fall.
The manner and magnitude of the LIBRA token not only shocked the crypto world but also led to a group of LIBRA buyers suing Davis in March. The group was led by Omar Hurlock, who argued that Hayden Davis and his siblings, Gideon and Thomas Davis, created LIBRA and misled the buyers to siphon more than $100 million from one-sided liquidity pools.
Tonight, our firm filed a class action complaint in the Supreme Court of New York on behalf of our client. We allege that Kelsier, KIP, Meteora, and related parties orchestrated an unfair token launch ($LIBRA), allegedly misleading purchasers and harming retail investors. pic.twitter.com/H7dD2LaARK
— Burwick Law (@BurwickLaw) March 18, 2025
Davis And Team Call Foul Play
The aftermath of that whole incident is what brings today’s story. Davis has argued that proceeding with the lawsuit in New York would be a violation of constitutional due process rights. Davis’ filing states that he was not present in New York at the time the alleged misconduct took place and did not make any effort to target New York’s crypto market. It is on this basis that he believes the court should not be able to hear the matter.
Davis’ legal team has also had their say in the matter. They argue that LIBRA tokens were made available to buyers all around the world and did not target specific geographies like New York. Aside from the global efforts argument, they also noted that the project was birthed in Argentina and not the US.
According to the defense team, the project’s website did not actively reach out to the New York market. In fact, it was passive and was designed primarily to collect applications from businesses in Argentina. Meanwhile, Omar Hurlock’s class-action group has already recorded a huge victory against Davis. In May, a temporary asset freeze order was given against him. The court ordered Circle, the stablecoin company, to freeze around $57.65 million worth of USDC, allegedly connected to the LIBRA project. While he is at the forefront of the case, Davis is not the only defendant named in the lawsuit. Other defendants include KIP Protocol and its CEO, Jilan Peh, and Meteora and its co-founder, Benjamin Chow. The entire incident had already caused political turmoil in Argentina, and it seems legal turmoil is next.
Kristian Koch
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