NewsCrypto

LIBRA Lawsuit Burwick Law Sues Meteora and Others

Burwick Law files a LIBRA lawsuit against KIP, Meteora, and Kelsier, alleging price manipulation and fraud that led to the tokenโ€™s collapse, harming investors.
Burwick Law files a LIBRA lawsuit against KIP, Meteora, and Kelsier, alleging price manipulation and fraud that led to the tokenโ€™s collapse, harming investors.

Key Points

  • LIBRA Lawsuit Burwick Law Sues Meteora and Others
  • The lawsuit claims they manipulated the tokenโ€™s price, leading to its collapse.
  • Kelsier Venturesโ€™ CEO, Hayden Davis, now faces an arrest warrant.
  • Investigations continue as the case sheds light on meme coin scams.

New York-based Burwick Law has launched a class-action lawsuit against KIP, Meteora, and Kelsier Ventures over the disastrous LIBRA meme coin launch. The lawsuit alleges that these entities engaged in deceptive practices, artificially inflating LIBRAโ€™s price before dumping it on retail investors.

LIBRA, a token linked to Argentinaโ€™s political scene, collapsed shortly after launch, leaving many investors with heavy losses. While speculation initially tied Argentine President Javier Milei to the scandal, Burwick Lawโ€™s lawsuit focuses solely on private entities.

The firm alleges that KIP, Meteora, and Kelsier manipulated LIBRAโ€™s liquidity pools, allowing insiders to profit while retail buyers suffered. According to their complaint, roughly 85% of the tokenโ€™s supply was withheld at launch, a classic sign of a pump-and-dump scheme.

Assets Possibly Launched By LIBRA Team. Source: Fernando Molina

Assets Possibly Launched By LIBRA Team. Source: Fernando Molina – Techtoken

A Pattern of Meme Coin Scams?

The LIBRA fiasco is not an isolated case. The crypto space has witnessed multiple meme coin scandals, with projects exploiting hype for short-term gains before collapsing. Recently, the BNB Chain faced another wave of meme token exploits, raising concerns about security in the meme coin sector.

Meteora, a decentralized exchange, played a central role in the LIBRA tokenโ€™s launch. Following the tokenโ€™s collapse, one of Meteoraโ€™s co-founders resigned, though he insisted on his innocence. Notably, this wasnโ€™t Meteoraโ€™s first controversyโ€”it was previously linked to the TRUMP meme coin, which saw massive speculative trading.

Kelsier Ventures, LIBRAโ€™s market maker, is at the heart of the controversy. CEO Hayden Davis openly defended his actions, even admitting to past scams in a shocking interview. His involvement has now led to an active arrest warrant, making him the most high-profile target in the scandal.

Further investigations suggest that the same group behind LIBRA may have attempted to launch two other Argentina-themed tokens, ARG and MILEI, using similar liquidity manipulation tactics.

What This Means for Crypto Regulation

The LIBRA lawsuit comes at a time when the crypto industry is facing increased scrutiny. The future of Ethereumโ€™s growth and the integration of DeFi with TradFi are critical topics, especially as regulators look to curb market manipulation in digital assets.

With political meme coin schemes damaging the reputation of the crypto space, this lawsuit could be a significant step in holding bad actors accountable. As the case unfolds, the industry watches closely, hoping for justice and clearer regulations to prevent future scams.

Meanwhile, the rise of Bitcoin ETFs and other institutional investments suggest that the crypto market is maturing. However, cases like LIBRA highlight the need for stronger safeguards to protect investors from fraudulent schemes.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0
Abhijeet
Abhijeet is a Web3 and crypto writer who brings blockchain concepts to life with simple, engaging, and SEO-driven content. From DeFi and NFTs to emerging blockchain trends, he crafts stories that resonate with readers and build authority for Web3 brands.

    You may also like

    More in:News

    Leave a reply

    Your email address will not be published. Required fields are marked *