Blockchain analytics firm Bubblemaps released a report on Aug. 25 alleging that Hayden Davis coordinated a sniping operation on Kanye West’s YZY token that generated $12 million in profits through 14 connected wallets.

The investigation began with a timing analysis showing Davis, also known as Kelsier, received access to $57 million in previously frozen funds, with YZY launching the following day.

Davis has faced previous controversies related to the LIBRA token collapse, where he denied fraud and insider trading accusations.

A US judge unfroze $57.6 million in USDC stablecoins tied to the LIBRA token scandal on Aug. 20, giving Davis and former Meteora DEX CEO Ben Chow access to funds that were frozen in May as part of a class-action lawsuit.

Bubblemaps tracked several addresses funded from centralized exchanges the day before YZY’s launch, discovering a cluster prepared to snipe the token through funding transactions, Cross-Chain Transfer Protocol transfers, and shared deposits linking back to Davis.

The connected wallets purchased YZY tokens as early as 1:54 A.M. UTC, just one minute after the announcement. The firm noted this pattern reflects Davis’s previous involvement in sniping high-profile tokens, including MELANIA and LIBRA.

Bubblemaps said it could not confirm whether Davis had insider information or direct connections to the YZY team, but documented the coordinated purchasing pattern and profit extraction.

The investigation continues as blockchain forensics firms examine celebrity token launches for potential manipulation.

Controversial launch followed by price colapse

YZY’s controversial launch saw trading activity drive its market capitalization near $3 billion before collapsing within hours.

The token initially attracted rapid inflows, pushing its fully diluted valuation into multibillion-dollar territory before prices retreated more than 90%, leaving its capitalization closer to $137 million.

Independent analysis from Conor Grogan estimated that 94% of the initial supply was controlled by insiders, including a single multisig wallet that held 87% of tokens before dispersing.

The YZY pool featured a 1% base fee with dynamic adjustments reaching 2.68%, combined with wider bin steps introducing additional 4-5% slippage, creating estimated 10% round-trip costs for traders.

YZY is down 82% from its all-time high of $3.1633 and was trading at $0.5670 as of press time.

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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.

Featured image from The Economist, chart from Tradingview

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In the latest development for the ongoing LIBRA coin legal saga, Argentinian newspaper La Nacion reports that Hayden Mark Davis, CEO of Kelsier Ventures, submitted a voluntary statement last Monday to a federal court in New York. The case centers on a class action lawsuit brought by U.S. investors who suffered losses following the rapid rise and subsequent collapse of the controversial LIBRA token.

Davis strongly denied any allegations of fraud, insider trading, or other misconduct. Instead, he attributed the token’s sudden price drop to Argentine President Javier Milei’s decision to delete a social media post endorsing LIBRA. According to Davis, Milei’s tweet initially boosted interest and investment in the project, but its subsequent removal fueled rumors and accusations that LIBRA was a scam, claims that Davis insists are false.

The entrepreneur described LIBRA as a project intended to support small businesses and educational initiatives in Argentina, not as a pump-and-dump scheme to defraud investors. He emphasized that he was unaware of any “snipers” (individuals who allegedly profited by purchasing large amounts of the token just before its launch) and denied any personal involvement in such activities.

Davis also sought to challenge the jurisdiction of New York federal courts, arguing that he has no residence or business activities in New York and that the project was conceived and executed in Argentina. He suggested that any legal proceedings should take place in Argentine courts.

Of particular note in Davis’s statement was his proposal to return approximately $100 million in investor funds, which he reportedly moved between February 14 and 15, 2025. However, this plan was blocked by a U.S. court order freezing over $55 million in crypto assets.

The case continues to unfold, with ongoing investigations in both the United States and Argentina. The Argentine Congress has recently convened a special commission to examine the matter, and experts have raised questions about the circumstances under which President Milei accessed information about the token, casting doubt on some of the official statements made at the outset of the controversy.

As legal and political scrutiny intensifies, the LIBRA case highlights the complexities and risks associated with meme coins and the influence of public figures in the digital asset market.

A memecoin creator notorious for being involved with several controversial projects is continuing to dump his coins even after a 95% drop.

New data from the blockchain tracking firm Bubblemaps is shedding light on on-chain activity of Hayden Davis, who admitted to having a role in both Libra (LIBRA), a memecoin originally backed by Argentinian President Javier Milei before he quickly disavowed it, and Melania Meme (MELANIA), a coin inspired by Melania Trump.

MELANIA began a steep descent the very day it was launched in January and is now down 95.3%.

Says Bubblemaps,

“Hayden Davis is STILL selling MELANIA

He recently sent $1 million to exchanges and extracted over $2 million from the liquidity pools…

For weeks, his MELANIA wallets were inactive – until now…

In total, Hayden sent $1,065,153 worth of MELANIA to centralized exchanges and extracted $2,050,666 from the liquidity pool over the last 14 days.

And many wallets haven’t sold yet.

Why act now?

Hayden may have seen the recent drop in attention as a window to quietly move funds while fewer people were watching

We’ll keep monitoring for further activity.”

At time of writing, MELANIA is trading for $0.615.

Argentinian authorities are reportedly attempting to have Davis arrested by Interpol for his role in LIBRA.

Says prosecutor Gregorio Dalbón,

“I’m here to request the immediate detention of Hayden Mark Davis, a citizen of the United States, who is accused of being one of the principal actors behind the launch of the cryptocurrency LIBRA…

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, which he can use to move or remain in hiding, hindering our investigation.”

President Milei quickly disavowed LIBRA, claiming that he was tricked into supporting its launch.

Said Milei in Spanish,

“I was not aware of the details of the project and after having become aware of it I decided not to continue spreading the word (that is why I deleted the tweet).

To the filthy rats of the political caste who want to take advantage of this situation to do harm, I want to say that every day they confirm how vile politicians are, and they increase our conviction to kick them in the a**.”

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Authorities in Argentina are reportedly looking to initiate the arrest of Hayden Davis, who was allegedly involved in pump-and-dump schemes for at least two memecoins.

An Argentinian prosecutor has filed a request with a judge to issue an Interpol “Red Notice” – or an international arrest warrant – for Davis because of his involvement with Argentinian president Javier Milei-inspired LIBRA and US First Lady Melania Trump-backed MELANIA, Forbes reports.

Hayden admitted to backing the launch of LIBRA and, according to on-chain analysts, was also involved in launching MELANIA – both of which crashed mere hours after launch and are down 92% and 94% from their highs, respectively.

Says prosecutor Gregorio Dalbón,

“I’m here to request the immediate detention of Hayden Mark Davis, a citizen of the United States, who is accused of being one of the principal actors behind the launch of the cryptocurrency LIBRA…

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, which he can use to move or remain in hiding, hindering our investigation.”

President Milei quickly disavowed LIBRA, claiming that he was essentially deceived into backing its launch.

Said Milei in Spanish,

“I was not aware of the details of the project and after having become aware of it I decided not to continue spreading the word (that is why I deleted the tweet).

To the filthy rats of the political caste who want to take advantage of this situation to do harm, I want to say that every day they confirm how vile politicians are, and they increase our conviction to kick them in the a**.”

Forbes says that Davis, his brother Gideon and his father Charles didn’t respond to a request for comments.

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Argentine lawyer Gregorio Dalbon has reportedly called on Interpol to issue a Red Notice for crypto entrepreneur Hayden Davis, linking him to the collapse of the Libra memecoin.

Davis is the CEO of Kelsier Ventures and a central figure behind the controversial Solana-based Libra memecoin whose market capitalization plunged by more than $4 billion amid accusations of a pump-and-dump scheme

Reports suggest that Davis and other key figures behind the Solana-based token amassed more than $107 million before the project imploded. Adding to the controversy, Davis allegedly claimed he wielded political influence over Argentine President Javier Milei.

Despite the issues, Davis has publicly defended himself. In an interview with YouTube investigator Stephen Findeisen, better known as “Coffeezilla,” he dismissed allegations of fraud and characterized the Libra token’s downfall as a business failure rather than a deliberate scam.

Interpol’s red notice

According to a local media report, Dalbon submitted his request to Eduardo Taiano, the lead prosecutor investigating the case, and Judge María Servini overseeing the proceedings.

Dalbon argued that Davis played a pivotal role in creating and promoting the Libra memecoin. He raised concerns about Davis’ ability to evade legal action, citing his financial resources and foreign residency as potential risks.

The lawyer further warned that allowing Davis to remain at large could obstruct legal proceedings, especially given the scale of investor losses.

The report stated:

“The possibility that Davis may leave his country of residence or go into hiding to avoid criminal liability for the events under investigation is aggravated by his financial resources , which could make it easier for him to move around or remain in hiding, thus frustrating the progress of the investigation.”

Considering this, Dalbon wants an international arrest warrant (Red Notice) issued for Davis.

A Red Notice is an Interpol request urging global law enforcement agencies to arrest a suspect pending extradition. However, compliance remains voluntary as individual countries decide whether to act based on their national laws.

This latest move adds to the intensifying investigation into the Libra memecoin scandal. Last week, Prosecutor Taiano took steps to secure key digital evidence, including transaction records and promotional materials. He also initiated efforts to freeze over $100 million allegedly pocketed by the token’s creators.

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One of the co-founders of the controversial memecoin LIBRA says the project itself “sniped” the token right after it rolled out.

In crypto trading, sniping refers to the practice of using trading bots or scripts to buy a newly launched coin ahead of big transactions or the entry of retail traders.

Snipers get their edge by buying early in anticipation of a massive spike in trading volume with the arrival of other investors.

In a new interview on the voidzilla YouTube channel, LIBRA co-creator Hayden Davis says he does not deny that wallets linked to the project sniped the memecoin on launch day.

According to Davis, LIBRA had a separate treasury dedicated to gobbling up the token and front-running other investors.

“That money that we consider ‘sniping’ is the project’s money.” 

Davis says teams behind memecoin launches often practice sniping “to deter” others from getting in early.

“From the standpoint of sniping, most of the time when we’re sniping, we’re attempting to avoid other snipers getting in.”

He explains that memecoin projects need to snipe their own coins to increase the odds of survival by inflating the market cap to a level high enough that the market can absorb large sell orders from deep-pocketed investors.

LIBRA, a crypto project initially backed by Argentinan President Javier Milei, surged to a market cap of over $4 billion on launch day before losing more than 95% of its value on the same day. Milei has since backtracked his support for the crypto asset. The people behind the team, including Davis, are in hot water amid rug-pull and insider trading accusations.

But Davis denies any wrongdoing and says LIBRA is a “plan gone miserably wrong.” He also says that the team is sitting on $100 million worth of the project’s money.

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