The creator of the LIBRA token is seeking to have a New York class-action lawsuit against him dismissed, arguing that the court lacks jurisdiction as the token was offered globally.
Hayden Davis, co-founder of the venture firm Kelsier Ventures, asked a New York federal court to dismiss the class-action lawsuit on Wednesday, alleging the claims don’t arise from actions “directed toward New York.”
“Davis does not reside in New York, does not transact business in New York, was not physically present in New York when the allegedly tortious conduct occurred, and made no specific effort to advertise to or serve the New York market in connection with the worldwide offering of $LIBRA meme coins,” the filing reads.
The LIBRA token attracted huge controversy in February after falling 94% from a $4.6 billion market cap. Part of its meteoric rise came from an X post from Argentine President Javier Milei praising the token.
A group of LIBRA buyers led by Omar Hurlock sued Davis in March, alleging he and his sibling Kelsier Ventures co-founders Gideon and Thomas Davis created the LIBRA token and misled investors that it was to boost Argentina’s economy in order to siphon over $100 million from one-sided liquidity pools.
The suit also named blockchain infrastructure companies, KIP Protocol and its CEO, Julian Peh, along with crypto platform Meteora and its co-founder, Benjamin Chow, as defendants.
LIBRA class suit would violate due process, Davis claims
Davis argued that as the suit was filed in New York but does not allege he had contact with the state of New York in promoting LIBRA, the court allowing the complaint to continue “would violate constitutional due process.”
He added the suit’s allegations against Meteora claimed it had ties to New York, citing that it has an office and conducts business activities there, but “lacks any assertions of personal jurisdiction over Davis.”
LIBRA promotion was global, “did not target” New York
Davis claimed that the LIBRA tokens “were offered to any buyer worldwide” and the promotion for the cryptocurrency wasn’t targeted at New York residents.
“Although the Complaint references certain statements made by Davis, such as Davis’s alleged public promise to repurchase certain $LIBRA tokens, the Complaint does not allege that Davis was physically present in New York when he made any such statements nor does it allege Davis specifically directed those statements toward New York or its residents,” the motion said.
He argued that the “project was conceived of in Argentina” and did not target or advertise to New York or “any specific person residing or physically present” there.
Davis described a website tied to the project as “passive” and claimed it “does not knowingly transmit goods or services to users in other states” and is designed to collect applications from businesses in Argentina.
Class group won asset freeze in May
The class group won a temporary order in May directing stablecoin issuer Circle to freeze around $57.65 million worth of USDC (USDC) allegedly tied to the LIBRA project.
Meanwhile, the LIBRA token’s rise and demise caused a political scandal for Milei, with members of Argentina’s opposition party calling for his impeachment.
No action was taken against Milei or any official allegedly tied to promoting LIBRA, and the country’s corruption watchdog cleared Milei over the saga.
The class group will now have to prove its allegations against Davis are tied to New York, while Davis has called for the suit to be dismissed without prejudice, meaning the claims could be re-filed in another court.
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