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Hayden Davis Faces Interpol Alert For Role In LIBRA Memecoin

An Argentine prosecutor has requested a judge to issue an Interpol “Red Notice” for Hayden Davis, an American citizen allegedly involved in the launch of the controversial LIBRA memecoin that has entangled Argentine President Javier Milei in a dramatic political scandal. 

LIBRA Memecoin Scandal

The request, made by prosecutor Gregorio Dalbón, reviewed by Fortune, accuses Davis of being a key figure behind the LIBRA memecoin. The token gained significant attention after President Milei endorsed it on Valentine’s Day. 

Following Milei’s endorsement, LIBRA’s market capitalization soared to over $4.5 billion. However, its value quickly collapsed, plummeting by more than 99% to approximately $18 million. Blockchain analysts later revealed that certain insiders sold large amounts of the token shortly after Milei publicly supported it.

In his request for the Red Notice, Dalbón expressed concerns that Davis might evade justice, citing his financial resources that could facilitate his flight or concealment. 

“The possibility that Davis will abandon his country of residence or hide to avoid answering for his alleged acts appears to be aggravated by the economic resources he possesses,” Dalbón stated, emphasizing the urgency of the situation. 

Interpol, the International Criminal Police Organization, facilitates international cooperation among law enforcement agencies in its 196 member countries, including the US and Argentina. A Red Notice serves as a request for member countries to locate and provisionally arrest individuals pending extradition.

Federal Investigation Launched Into Javier Milei’s Endorsement

Davis has not publicly responded to the allegations, nor have his family members, including his brother Gideon and father Charles, who are involved in their family crypto venture, Kelsier Ventures, Fortune reported. 

Yet, the controversy surrounding LIBRA is further complicated by its connection to former President Donald Trump, who recently launched his own memecoin named TRUMP. Trump’s endorsement of cryptocurrency has been characterized as part of his broader strategy to position himself as a pro-crypto advocate. 

Following Milei’s endorsement, Davis openly acknowledged his role as an advisor to the Argentine president, stating, “I am indeed Javier Milei’s advisor.” He also claimed responsibility for the launch of a separate memecoin associated with Melania Trump.

The fallout from the LIBRA launch has prompted legal inquiries, including a federal investigation into Milei’s actions. Both Milei and Davis have denied any wrongdoing, but the political implications of this incident are significant, as it raises questions about the accountability and regulation of cryptocurrencies in Argentina.

LIBRA

At the time of writing, the memecoin is trading at $0.060, down over 90% from its all-time high reached on Valentine’s Day. 

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Crypto Exchange Garantex Co-Founder Arrested In India Over Extradition Request

Authorities in India have apprehended Aleksej Besciokov, the alleged co-founder of Garantex, a cryptocurrency exchange reportedly implicated in “extensive money laundering activities (MLA).” 

$60 Billion In Transactions Linked To Criminal Activity

Besciokov, a 46-year-old Lithuanian national, was reportedly arrested while vacationing with his family in Varkala, a coastal city in the Indian state of Kerala. His arrest comes after an indictment unsealed by the US Department of Justice (DOJ) on March 7.

The DOJ’s indictment charges Besciokov and his co-founder, 40-year-old Aleksandr Mira Serda, a Russian national residing in the United Arab Emirates, with conspiracy to commit money laundering. 

Garantex, which launched in 2019, was sanctioned by the US Treasury’s Office of Foreign Assets Control in April 2022 for its role in facilitating the movement of criminal proceeds. 

Reports indicate that the exchange has processed over $60 billion since sanctions were imposed, raising significant concerns regarding its operations.

According to the blockchain analysis firm Elliptic, Garantex has been involved in various forms of unlawful activity, including facilitating ransomware attacks, drug trafficking, and evading sanctions imposed on Russian elites. 

The firm noted that the exchange has enabled Russian oligarchs to transfer their wealth abroad, particularly following the invasion of Ukraine.

DOJ Alleges Garantex Co-Founder Operated Under Hacker Alias “Proforg”

The US Department of Justice also alleges that Besciokov served as Garantex’s primary technical administrator, responsible for maintaining critical infrastructure and approving transactions. 

In conjunction with the indictment, German and Finnish law enforcement agencies seized servers that hosted Garantex’s operations, and US authorities have frozen over $26 million linked to the exchange’s money laundering activities.

In a notable twist, Besciokov is said to have operated under the hacker handle “proforg,” a nickname associated with a long-running Russian-language forum known for its explicit content. 

The charges against him include conspiracy to violate the International Economic Emergency Powers Act, which carries a maximum sentence of 20 years in prison, and conspiracy to operate an unlicensed money transmitting business, which could lead to an additional five years of imprisonment.

Besciokov is scheduled to appear in a Delhi court on March 14, where he will face these serious charges. If found guilty of any offenses alleged, he will forfeit to the United States any property—whether real or personal—that was involved in the commission of the offense or any property traceable to such assets. 

Furthermore, if convicted of the offense detailed in Count II of the indictment, Besciokov will also forfeit any property that constitutes or is derived from proceeds traceable to the offense.

Garantex

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Uncertainty Looms For Crypto As SEC And CFTC Leadership Transitions Unfold Under Trump

As Donald Trump prepares to take office for another term, speculation is intensifying regarding the future of crypto regulation, particularly concerning the leadership of the US Securities and Exchange Commission (SEC). 

Recent social media posts by FOX journalist Eleanor Terret suggest that SEC Chairman Gary Gensler may be on the verge of resigning, possibly before Trump’s inauguration in January 2025.

Pro-Crypto Candidates In The Running To Succeed Gensler

According to sources close to the situation, Terret says Gensler’s resignation, which would leave his term, set to expire in 2026, uncompleted, is expected to be announced after Thanksgiving. 

However, while Gensler has faced heavy criticism during his tenure for his strict regulatory approach to the crypto industry, the identity of his successor remains uncertain.

Former Commodity Futures Trading Commission (CFTC) Chairman Christopher Giancarlo has dismissed rumors regarding his nomination, while several other candidates are being considered. 

Among the names in the mix are Dan Gallagher, Chief Legal Officer at crypto exchange Robinhood; Bob Stebbins, a partner at Willkie Farr; former SEC Commissioner Paul Atkins; and Paul Hastings lawyer Brad Bondi. 

Terret suggests that Gallagher, while initially reluctant to leave Robinhood, may reconsider as the dynamics of the administration’s appointments shift. 

Stebbins, who has close ties to Jay Clayton, a former SEC chairman, is rumored to be a favored candidate, though he lacks a crypto background. Still, sources suggest he would follow the Trump administration’s lead on digital assets.

Atkins and Bondi are both known for their pro-crypto stance, advocating for a “lighter regulatory touch.” Atkins serves on the board of the Digital Chamber of Commerce and co-chairs its Token Alliance, focusing on token issuance growth. Bondi has been involved in advising decentralized finance (DeFi) projects, indicating a commitment to fostering innovation in the crypto space.

Trump Plans Resource Allocation For CFTC

Other names circulating in crypto circles include former CFTC Chair Heath Tarbert, former Acting Comptroller of the Currency Brian Brooks, and former SEC Investment Management Director Norm Champ. Champ recently expressed his willingness to serve if asked, signaling his interest in a potential role in the upcoming administration.

In addition, pro-crypto SEC Commissioner Mark Uyeda is reportedly open to taking the chairmanship, possibly as acting chair, while fellow Commissioner Hester Peirce, dubbed the “crypto mom” of the agency, has privately indicated her disinterest in the role.

With these leadership changes on the horizon, Terret anticipates that the new SEC chair will be pro-crypto, while also being equipped to handle the broader responsibilities of the agency, which include oversight of public companies, the stock market, the bond market, private funds, and the consolidated audit trail (CAT).

Compounding the speculation is the expectation that the Trump administration may also increase the CFTC’s role in cryptocurrency regulation. Terret asserts that the administration is considering allocating more resources to the CFTC, although the specifics of how this will be implemented remain unclear and would likely require additional funding.

Crypto

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