Could Hayden Davis Escape the LIBRA Class Suit by Challenging New York’s Jurisdiction?

Hayden Davis, the creator of the LIBRA token, is fighting to dismiss a high-profile class-action lawsuit in New York. Davis argues the court lacks jurisdiction because LIBRA was offered worldwide, not specifically to New York or its residents.

In his motion, Davis claims he never resided in New York, did not conduct business there, and made no effort to target the state with LIBRA’s promotion. He insists the project was conceived and executed in Argentina, with no direct outreach to New York investors.

Does New York have the authority to try global crypto cases?

The lawsuit, led by a group of LIBRA buyers, accuses Davis and his co-founders of misleading investors and siphoning over $100 million from liquidity pools. Plaintiffs argue that US investors suffered losses, justifying the New York venue. However, Davis maintains that allowing the case would violate constitutional due process because there is no evidence he targeted New York specifically.

Davis’s legal team points out that while some defendants, like crypto platform Meteora, have clear business ties to New York, there are no such claims against Davis. The defense says the LIBRA website was passive and not designed to serve New York or US users in particular.

Did you know?
Over $280 million in crypto assets connected to the LIBRA token were frozen by court order, making it one of the largest asset freezes in a meme coin case to date.

Can international crypto projects avoid US lawsuits by not targeting states?

The LIBRA token’s meteoric rise and collapse in early 2025 drew global attention after a social media endorsement from Argentine President Javier Milei. The sudden crash, following Milei’s deleted post, led to accusations of a “pump and dump” scheme. Davis denies any wrongdoing, blaming the collapse on market panic and not on fraud or insider trading.

The class group successfully obtained a temporary order to freeze nearly $58 million in assets tied to LIBRA. As the lawsuit proceeds, the core question is whether US courts can claim jurisdiction over a project that was globally accessible but not specifically marketed to Americans or New Yorkers.

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LIBRA token’s global launch complicates legal accountability

Davis argues that the LIBRA project aimed to assist small businesses and education in Argentina, not to deceive international investors. The asset freeze order blocked his offer to return $100 million in investor funds. The ongoing investigations in both the US and Argentina add further complexity.

Legal experts note that the outcome of this jurisdictional challenge could set a precedent for future cross-border crypto litigation. If the court sides with Davis, it may become harder for US investors to sue foreign crypto projects unless there is clear evidence of targeted marketing or business activity in the US.

Davis’s defense strategy could reshape crypto class actions

The LIBRA case highlights the legal gray areas facing global crypto ventures. Davis’s motion to dismiss, if successful, could encourage other international projects to structure offerings to avoid US jurisdiction. For now, the New York court must decide whether it has the authority to hear claims against a project conceived and promoted far beyond its borders.

As the legal battle unfolds, the decision will be watched closely by crypto entrepreneurs, investors, and regulators worldwide, potentially reshaping the future of cross-border accountability in digital finance.