Michaela
Burwick Law has filed a class action complaint in the Supreme Court of New York against Kelsier Ventures, KIP Protocol, and Meteora, alleging their involvement in the Libra (LIBRA) token scheme, which reportedly defrauded investors.
The firm stated in an X post that its complaint, filed on behalf of its client, accuses the defendants of using one-sided liquidity pools to inflate the LIBRA token’s price, misleading investors, and extracting more than $100 million.
“We further allege that approximately 85% of supply was withheld at launch, enabling insiders to profit while everyday buyers bore the losses,” Burwick Law wrote.
According to the class action complaint, the scheme led to a rapid withdrawal of approximately $107 million from liquidity pools, triggering a sharp 94% drop in the token’s market value within hours.
Argentinian President Javier Milei, who endorsed the LIBRA token as a strategy to boost private-sector investment, was referenced in the lawsuit but was not listed as a defendant.
However, the complaint alleges that the defendants capitalized on President Milei’s public influence to heavily promote the LIBRA token, portraying it as a legitimate economic opportunity while misleading investors about its true financial prospects.
“As a symbol of this movement and in honor of Javier Milei’s libertarian ideas, we are launching the $LIBRA token, designed to strengthen the Argentine economy from the ground up by supporting entrepreneurship and innovation,” the class action complaint stated, referencing the LIBRA meme coin website.
Burwick Law is pursuing financial restitution, punitive damages, and the return of alleged illicit profits, along with legal measures to block future deceptive token launches.
LIBRA Creator Wanted Amid Class Action Complaint
Last week, Argentine lawyer Gregorio Dalbon formally sought Interpol’s assistance in the arrest of Hayden Davis, the U.S.-based founder of the defunct LIBRA cryptocurrency.
The request aims to obtain an Interpol Red Notice, which notifies global law enforcement agencies about individuals wanted for international prosecution.
The case against Davis is based on claims that he was instrumental in developing and promoting LIBRA, with his involvement allegedly leading to substantial investor losses. Dalbon’s petition highlights the magnitude of the controversy and stresses the importance of holding Davis accountable.
A Red Notice would not ensure Davis’s immediate arrest or extradition to Argentina. However, it would heighten the chances of his detention if he attempts to travel abroad.
Read More
- DefiTuna Severs Ties with Kelsier Over $200M Meme Coin Scheme
- Meteora Co-Founder Ben Chow Resigns Amid Meme Coin Scheme Allegations
- LIBRA Co-Creator Paid Argentina President’s Sister for Support – Claims
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
