The creator of Libra Token is about to file a New York class action lawsuit against him, claiming that the court lacks jurisdiction due to the token being provided worldwide.
Hayden Davis, co-founder of venture company Kelsie Ventures, asked federal court in New York on Wednesday to dismiss the class action lawsuit.
“Davis is not resident in New York, did not trade any business in New York, and did not physically exist in New York where illegal activities allegedly occurred, so he made no concrete efforts to promote or serve the New York market in connection with the global offering of $libra meme coin,” reads Filing.
Libra’s tokens attracted a major controversy in February after a 94% drop from its $4.6 billion market capitalization. Part of that meteor rise comes from the X-Post from Argentine President Javier Miley, who praises the token.
A group of Libra buyers led by Omar Harlock sued Davis in March, claiming that he and his brothers Kelsie Venture co-founders Gideon and Thomas Davis created Libra tokens and misinterpreted investors to boost Argentina’s economy, which exceeds $100 million from one sub-resistance pool.
The lawsuit has named Crypto Platform Meteora and its co-founder Benjamin Chow as defendants, Blockchain Infrastructure Companies, KIP Protocol and its CEO, Julian Peh.
Davis claims that Libra class suits violate legitimate processes
Davis has filed in New York, but the courts have argued that he has not alleged that he had contact with New York State in promoting Libra, allowing the complaint to “violate the constitutional due process.”
He argued that the lawsuit filed against Meteora has connections with New York, adding that although there is an office and is engaged in business activities, “there is no claim of personal jurisdiction over Davis.”
Libra’s promotion is global and “didn’t target New York”
Davis claimed that the Libra tokens were “provided to any buyer around the world,” and that the cryptocurrency promotion was not aimed at New York residents.
“The complaints refer to certain statements made by Davis, like Davis’s official promise to buy back certain $Libra Tokens, but the complaints do not claim that it was physically present in New York when Davis issued such a statement.
He claimed that “the project was thought of in Argentina,” and did not target or promote New York or “specific people who live or physically exist.”
Davis describes the website tied to the project as “passive,” claiming that it “will not intentionally send goods or services to users in other states,” and is designed to collect applications from Argentinean companies.
Class group won assets freeze in May
The class group won a temporary order in May instructing the Stablecoin publisher circle to freeze around $57.65 million worth of USDC (USDC) that was allegedly linked to the Libra project.
Meanwhile, the rise and end of the Libra tokens caused a political scandal in Mairay, when members of the Argentine opposition party seeking bounce each.
No measures have been taken against civil servants allegedly related to the promotion of Milei or Libra, and the country’s corruption watchdog has cleared Milei on Saga.
The class group must prove that the allegations against Davis are tied to New York, but Davis is asking for the case to be dismissed without bias.
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