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Hayden Davis, creator of the LIBRA token, has now described the crypto project as a memecoin in a recent court filing as part of a legal strategy to counter a class-action lawsuit. The American crypto entrepreneur and marketer continues to draw negative attention and remains under investigation following the highly questionable launch and crash of LIBRA in February 2025.

Davis’ Clash With US Private Investor Forces LIBRA Memecoin Admission – Report

The LIBRA project gained much popularity following public promotion by Argentine President Javier Milei on X, on February 14, 2025. The crypto token’s value soared to $5 in a few hours following its launch before plummeting to nearly $0. Since then, the nation’s leader has distanced himself from the crypto project while even authorizing an investigation into the event by the nation’s anti-corruption office.

According to local Argentine media Clarin, Omar Hurlock, a US private investor, through American law firm Burwick Law, has since initiated a class-action lawsuit against Hayden Davis and other persons behind LIBRA, including Benjamin Chow, co-founder of the Meteora platform, and Julian Peh, head of Kip Protocol.

In a 30-page defence against Hurlock’s claims of running a scam, Hayden Davis states the US investor has no evidence to back the complaints of ever purchasing tokens from him or other developers of the crypto project. In particular, Davis attacks Hurlock’s credibility to lead a class action in a case he is not a direct victim.

Furthermore, the crypto entrepreneur also publicly refers to LIBRA as a memecoin for the first time since the incident in February. Before this statement, the cryptocurrency had been previously described by all parties involved as an investment fund targeted at financing Argentine companies.

In ascribing memecoin status to LIBRA, the defendant emphasizes the speculative nature of this token while also claiming no promises were made to prospective investors. A statement from the brief reads:

Defendants provided no plans, details, or infrastructure to potential purchasers of the memecoin, nor did they provide detailed disclosures or tokenomic distribution information regarding how the funds raised would be allocated to fulfill the [allegedly] promised economic initiatives

The case is presently filed at the District Court for the Southern District of New York under Judge Jennifer L. Rochon and is scheduled for a hearing on August 19. The outcome of this lawsuit is also expected to influence the status of $250 million in frozen assets, which are linked to profits from the LIBRA project.

Price Overview

At press time, LIBRA trades at $0.01690 with its total market cap valued at $4.61 million.

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British Cabinet Office Minister Pat McFadden has questioned the political donations made in Crypto. According to a Guardian report issued on July 18, 2025, McFadden, an intimate ally of British Prime Minister Kiel Starmer, said, “While democracy funding is often a controversial area, I think it’s very important to know who is providing donations.

British Cabinet Office Minister Pat McFadden has called for election officials to consider banning political donations made in digital currency. #crypto #UKhttps://t.co/qhoremm5hg

– cryptonews.com (@cryptones) July 18, 2025

Important discussions about crypto regulations have been cleaned up in both the UK and the US. In the US, President Donald Trump has announced that he will accept code donations. In fact, Thumzup Media Corporation, a Donald Trump JR-backed advertising technology startup, has secured board approval to hold up to $250 million in crypto. Meanwhile, the UK government is taking steps to “protect democracy.”

“Protection of democracy is one of the government’s most important duties. The increased risk that crypto donations, and crypto will be used to lead to British politics, is a clear and current danger to democratic integrity,” said Tom Brake, director of the Unlocked Democracy Campaign Group.

Discover: Best Meme Coin ICO for Investing in 2025

Crypto companies collect user data from 2026, with large fines for false reports

The UK is implementing serial crypto reforms through HM Revenue and Customs (HMRC). The UK government has introduced another drastic regulatory move driven by the adoption of the Economic Co-operation and Development Organization (OECD) Crypto Asset Reporting Framework (CARF). Starting January 1, 2026, all cryptographic companies must collect and disclose detailed user and transactional data.

“If you are offering CryptoAsset services in the UK starting January 1, 2026, you will have a new responsibility to collect and report data. HMRC” said the May 14, 2025 announcement.

All CryptoAsset service providers (both domestic and foreign platforms that serve UK clients) are required to collect and report extensive information about all users and all transactions. This includes address, country of residence, national insurance number, unique taxpayer references, and more.

Discover: 20+ Next Cryptocurrency to Explode in 2025

It is set to prohibit Crypto purchases with credit cards and loans

If you are using a credit card to purchase Crypto in the UK, it may be numbered on that day. The Financial Conduct Authority (FCA) has officially proposed rules to prevent retail investors from using borrowed funds to purchase cryptocurrency. This includes credit cards, personal loans, and even loans from crypto-specific lenders. However, some crypto users are worried that the UK ban will block innovation and limit access to the market.

The move is part of a broader effort to protect consumers from acquiring debts that chase unstable digital assets. And as more people are jumping into the code with money they don’t actually have, the UK’s top financial watchdogs are ringing their alarms.

Discover: Best New Cryptocurrencies to Invest in 2025

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The Department of the Treasury is formally taking down a new rule that expanded the definition of a broker under the U.S. Tax Code.

The rule titled “Gross Proceeds Reporting by Brokers that Regularly Provide Services Effectuating Digital Asset Sales” classified decentralized finance (DeFi) exchanges as brokers required to furnish the Internal Revenue Service (IRS) with information on user transactions involving digital assets.

The rule was published in the Federal Register on December 30th during the final weeks of the Biden administration and took effect on February 28th.

In March, legislators from both chambers of Congress voted to repeal the controversial law, a move supported by President Donald Trump, who signed the bill reversing the crypto broker rule on April 11th.

The Treasury Department says the controversial rule now has no legal force or effect.

“Pursuant to the CRA (Congressional Review Act), any rule that takes effect and later is made of no force or effect by enactment of a joint resolution shall be treated as though such rule had never taken effect. Accordingly, the Treasury Department and the IRS are reverting the text of the section 6045 regulations back to the text that was in effect immediately prior to the effective date of the Final Rule.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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The controversial exchange eXch plans to close its doors in May after facing allegations that it laundered crypto stolen in the record-setting Bybit exploit earlier this year.

In February, hackers looted nearly $1.5 billion worth of Ethereum (ETH) and Lido Staked Ether (stETH) from Bybit in the largest crypto theft ever and possibly the biggest heist in world history.

The blockchain research firm Elliptic, pseudonymous on-chain investigator ZachXBT and other researchers pinned the exploit on the Lazarus Group, a prolific North Korean cybercriminal outfit known for numerous high-profile hacks on major crypto platforms.

Elliptic also said that Lazarus used eXch as part of its process to launder the stolen crypto. The exchange denied the money-laundering allegations, though it did cop to processing an “insignificant” portion of the stolen Bybit funds.

This week, eXch took to the BitcoinTalk forum to announce it was shutting down on May 1st, claiming that “friends” in the state intelligence sector confirmed the exchange is the target of an “active transatlantic operation.”

“Even though we have been able to operate despite some failed attempts to shut down our infrastructure (attempts that have also been confirmed to be part of this operation), we don’t see any point in operating in a hostile environment where we are the target of SIGINT (Signals Intelligence) simply because some people misinterpret our goals. Starting from the date of the merger with a new management team this month, and as a result of some urgent meetings, the majority of us voted to cease and retreat instead of going against strong winds, because none of us want to cause any harm to innocent people or this forum.”

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Virgil Griffith, a former Ethereum developer who worked on the Ethereum Name Service (ENS), has been released from prison on parole and relocated to a halfway house.

Updates posted on X on Wednesday, April 9, 2025, disclosed that Griffith is now starting his return to civilian life after serving some of his sentence for violating US sanctions.

Ethereum Developer’s Prison Release Confirmed By Sources

Brantly Milegan, executive director of Ethereum Identity Foundation, broke the news with a photo of Griffith and his parents outside the prison. Alexander Urbelis, ENS general counsel and part of Griffith’s legal team, confirmed his release from FCI Milan in Michigan.

VIRGIL GRIFFITH IS OUT OF PRISON!!!

just released this morning! he’ll be in a halfway house for a few weeks, and parole after that with work restrictions (so a pardon is still important), but HE IS OUT pic.twitter.com/Q4jRZmryGk

— brantly.eth (@BrantlyMillegan) April 9, 2025

Griffith was arrested in November 2019 after speaking at a cryptocurrency conference in North Korea. Prosecutors claimed his presentation provided information that could help North Korea evade sanctions and launder money.

From 63 Months To 56: The Sentence Journey

In 2022, Griffith was sentenced to 63 months in prison and meted a fine of $100,000 after pleading guilty to the International Emergency Economic Powers Act. In July 2024, US District Judge Kevin Castel lowered his sentence to 56 months, citing him as a first-time offender.

ETHUSD trading at $1,598 on the daily chart: TradingView.com

Crypto Return Faces Serious Hurdles

Griffith himself starts a several-year probation term. His attorneys are fighting to transfer him from the halfway house to home confinement, but returning to regular life is hindered.

The Department of Commerce placed severe export restrictions on Virgil that will extend until 2032, Urbelis explained. These limits could block his return to the cryptocurrency field.

Presidential Pardon Possibility Under Trump Administration

Before joining Ethereum, Griffith earned a Ph.D. from Caltech and created WikiScanner, a tool tracking anonymous Wikipedia edits. He also worked with Aaron Swartz on Tor2web.

According to Urbelis, Griffith is seeking a pardon from US President Donald Trump. Trump has previously granted clemency to others in crypto-related cases, including Ross Ulbricht and Arthur Hayes.

The case has triggered debate about sharing open-source information versus helping sanctioned nations. Ethereum co-founder Vitalik Buterin has supported Griffith, even signing a petition calling for his release in 2023.

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Solana Labs co-founder Anatoly Yakovenko said he is “ashamed” about downplaying the impact of a recent Solana Foundation advertisement, calling it “mean and punching down on a marginalized group.”

Yakovenko made the statement in a social media post on March 19 and expressed gratitude to those in the Solana (SOL) ecosystem who called it out immediately.

He said:

“I am grateful for the ecosystem devs and artists that immediately called it what it is both publicly and privately. You are the only silver lining to this whole mess.”

He further committed to ensuring that the Solana Foundation remains focused on its core mission of decentralization and open-source software development rather than engaging in cultural debates. 

His response signals an effort to realign the foundation’s priorities and address community concerns.

Controversial ad sparks backlash

The Solana Foundation faced significant criticism following the release of a promotional video titled “America is Back — Time to Accelerate.”

The ad, posted on March 17, depicted the US as a man in therapy who struggles to focus on technological advancements like crypto and space travel due to societal discussions on pronouns and gender identity.

However, the ad was widely condemned for injecting political discourse into the crypto space.

Andrew Thurman of the Jito Foundation, the entity behind the largest project by total value locked on Solana, emphasized the importance of neutrality in blockchain projects.

After facing mounting criticism, the Solana Foundation deleted the video within nine hours of its release. However, by that time, it had already garnered over one million views.

Following the backlash, Solana Foundation Vice President of Technology Matt Sorg clarified that only a few individuals were involved in the ad’s production. He responded to concerns from Cinneamhain Ventures partner Adam Cochran, who questioned how the ad could have passed multiple stages of approval without objections.

Cochran further noted that transgender developers have significantly advanced open-source cryptography and security software, arguing that the ad failed to recognize the industry’s history of meritocratic contributions.

Sorg explained that most of the production process had been outsourced to external teams and clarified that the ad did not represent the Solana community.

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