The founder of the LIBRA token is seeking to dismiss a class action lawsuit against him in New York, arguing that the court lacks jurisdiction because the token was issued globally.
Hayden Davis, co-founder of venture capital firm Kelsier Ventures, requested on Wednesday (July 8) that the New York federal court dismiss the class action, stating that the allegations do not arise from "conduct directed at New York."
"Davis does not reside in New York, does not trade in New York, was not in New York when the alleged tort occurred, and made no special efforts to promote or serve the global issuance of the LIBRA meme coin in the New York market," the filing stated.
The LIBRA token sparked significant controversy after its market value plummeted 94% from $4.6 billion in February. Its rapid rise was partly attributed to an X post by Argentine President Javier Milei praising the token.
A group of LIBRA buyers led by Omar Hurlock sued Davis in March, accusing him and his brothers, Kelsier Ventures co-founders Gideon and Thomas Davis, of creating the LIBRA token and misleading investors by claiming it was intended to boost the Argentine economy, allowing them to siphon off over $100 million from a unilateral liquidity pool.
The lawsuit also names blockchain infrastructure company KIP Protocol and its CEO Julian Peh, as well as crypto platform Meteora and its co-founder Benjamin Chow as defendants.
Davis argued that since the lawsuit was filed in New York but did not allege any connection to him in promoting LIBRA, allowing the complaint to proceed "would violate constitutional due process."
He added that the lawsuit's allegations against Meteora claim a connection to New York, noting that it has an office and conducts business activities there, but "lacks any assertion of personal jurisdiction over Davis."
Davis claimed that the LIBRA token "is offered to any buyer globally," and the promotion of the cryptocurrency was not targeted at New York residents.
"Although the complaint mentions certain statements made by Davis, such as his alleged public commitment to repurchase certain $LIBRA tokens, the complaint does not allege that Davis was in New York when making any such statements, nor does it allege that Davis specifically targeted New York or its residents with these statements," the motion stated.
He contended that "the project was conceived in Argentina" and was not aimed at or promoted to New York or "anyone residing or located there."
Davis described the project-related website as "passive" and claimed it "did not intend to transmit goods or services to users in other states," aiming to collect applications from Argentine businesses.
The class action group won a temporary order in May directing stablecoin issuer Circle to freeze approximately $57.65 million in USDC, allegedly related to the LIBRA project.
Meanwhile, the rise and fall of the LIBRA token have triggered a political scandal for Milei, with members of the Argentine opposition calling for his impeachment.
No action has been taken against Milei or any officials allegedly related to the promotion of LIBRA, as the country's anti-corruption oversight body cleared Milei in this matter.
The class action group must now prove that its allegations against Davis are related to New York, while Davis has requested the dismissal of the lawsuit without prejudice, meaning these allegations can be refiled in other courts.
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Original: “LIBRA Token Creator Defends Class Action Lawsuit Due to Lack of Jurisdiction”
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