DOJ Investigates LIBRA Memecoin Scam: $87M Lost by Investors

The U.S. Department of Justice (DOJ) has kicked off a deep dive into the dramatic rise and fall of the $LIBRA memecoin, now widely labeled a colossal crypto scam. Investors, lured by promises of quick riches, are reeling from losses estimated between $87 million and $107 million. The DOJ's Fraud Section is sifting through mounting evidence to determine if this warrants criminal charges, a move that's got the crypto world buzzing.

The $LIBRA crash didn't just burn a hole in wallets—it sent shockwaves across the crypto market, hitting investors hard in Argentina, the U.S., and beyond. Platforms like KIP Protocol, Jupiter, and Meteora are tangled up in the fallout, with one of their top execs now under scrutiny. Authorities are piecing together how this mess unfolded, and it's not looking pretty.

At the heart of the storm is Hayden Mark Davis, an American fingered as the mastermind behind the alleged scam. Others tied to the probe include Singapore's Julian Peh, Argentina's Mauricio Novelli, and Manuel Terrones Godoy, who straddles ties between Argentina and Spain. Davis, who's since vanished into hiding in Texas with private security in tow, fessed up in chats with YouTuber Coffeezilla and investor Dave Portnoy. He admitted to rigging $LIBRA's price, leaking insider info, and pocketing investors' cash—though he did cut Portnoy a $5 million refund check.

The plot thickens with Argentine President Javier Milei, who plugged $LIBRA on X as a “private project” boosting small businesses—right before its value tanked. As losses piled up, Milei backpedaled, shrugging off crypto as a roll of the dice. His critics aren't buying it, filing legal complaints and even pushing for impeachment over his role in hyping the doomed token.

Davis isn't flying solo. He operates Kelsier Ventures out of Delaware alongside his brother Gideon and their dad, Charles Thomas Davis—a man with a rap sheet for fraud and a stint in federal prison before jumping into crypto. That family tie's raising eyebrows as investigators dig deeper.

If the DOJ uncovers concrete proof, this could balloon into a multi-agency takedown, roping in the FBI, Homeland Security, and the SEC. The SEC's new crypto fraud unit is already flexing its muscles, hinting at a wider crackdown on shady digital dealings. For now, the DOJ's keeping mum, but the stakes are sky-high.

Meanwhile, New York's Burwick Law is stepping up, working to claw back funds for over 200 battered investors. The $LIBRA debacle is fast shaping up as one of the ugliest crypto scandals in recent memory, a cautionary tale of hype gone wrong. With millions lost and big names in the crosshairs, this crypto fraud saga's got everyone watching—nervously.