Hayden Davis, chief executive officer of Kelsier Ventures and creator of the $LIBRA cryptocurrency, denied accusations of carrying out a “scam” with the coin’s launch. He argued that neither he nor his company are based in New York, where there is an ongoing class action lawsuit.

The $LIBRA cryptoscandal broke out on February 14, when President Javier Milei posted about the token and the Viva La Libertad! private project on social media platform X. The project supposedly intended to finance small Argentine companies. The price of $LIBRA spiked after his post, before nosediving. Developers withdrew around US$100 million from the project during this period, driving accusations that the operation constituted a “pump and dump,” as well as allegations of insider trading. Hours later, Milei deleted the post.

The scandal led to ongoing investigations in Argentina and other countries, including Spain and the United States. At the time, Milei stated that he had deleted his post because he was not aware of the particulars of the project. However, critics have alleged that the timing of Milei’s publication and the information it contained would not have been possible without prior co-ordinated action.

Milei and Davis had met in the Casa Rosada in Buenos Aires months before the cryptocurrency’s launch.

On Monday, Davis spontaneously filed a three-page declaration before the New York court that is handling the class action against him and his company, as reported by several local outlets and published in full by Argentine media outlet La Nación. He claimed that the cryptocurrency collapsed after Milei decided to delete the post he had published just a minute before the token was created.

Davis said that he does not know why Milei deleted his post, and insisted that the launch was originally intended to finance small companies and educational projects in Argentina.

The investigation aims to determine whether any crimes were committed regarding the launch and rapid downfall of $LIBRA. Despite his involvement, Milei is not accused in the case.

“I am making this declaration under the understanding that I have not and am not consenting to jurisdiction in New York,” Davis wrote in the declaration, attempting to reject the New York-based investigation. “The ‘Viva La Libertad! Project’ was conceived of in Argentina.”

Davis said that Milei’s publication on X caused the $LIBRA operations to spike and that his decision to delete the post encouraged the accusations that it was a scam. “Those accusations were, and continue to be, false.”

He also denied accusations of insider trading, using privileged information for his own or others benefit, as well as accusations that he knew about the existence of “snipers” — people who bought the token seconds before its launch — or that he himself was a “sniper.”