Michaela
Investors have filed a class-action lawsuit against the decentralized finance (DeFi) protocol Meteora, alleging manipulation of the M3M3 token launch and market price.
In a newly amended complaint filed on April 21 in the U.S. District Court for the Southern District of New York, investors allege that Meteora, along with venture capital firm Kelsier Labs and four current or former executives, intentionally misrepresented key details surrounding the launch of the M3M3 token in December 2024. The plaintiffs claim these actions were part of an effort to “illicitly enrich themselves.”
Investors claimed to have lost at least $69 million between December 2024 and February 2025, after the defendants allegedly misled them into believing “trusted leaders in the Solana ecosystem” were behind the M3M3 token launch. Instead, the plaintiffs argue, the launch was a “blatant fraud,” with sales manipulated to artificially drive up the token’s price.
“In reality, $M3M3 was a blatant fraud jointly planned and perpetrated by Meteora, Kelsier, and the Individual Defendants,” the filing wrote.
The filing also asserted that the inflated valuation misled outside investors, who trusted the defendants’ claims that the M3M3 launch was public, transparent, and fair to all. Investors, believing the market price reflected the token’s true value, relied on these representations. Furthermore, the post-launch price surge reinforced the defendants’ aggressive marketing tactics, falsely portraying the M3M3 token as having inherent value and a low-risk profile.
“Had Defendants complied with the registration and disclosure requirements applicable to $M3M3, Plaintiffs and other non-insider investors would not have purchased $M3M3 Tokens at inflated prices or suffered the resulting losses,” the filing stated. “Defendants are liable to Plaintiffs and the rest of the proposed Class for compensatory and punitive damages, and other relief, to compensate for the substantial losses caused by Defendants’ malfeasance,” it added.
Meteora has previously been linked to the launch of several headline-grabbing — and often controversial — tokens. Among them are digital assets associated with former U.S. President Donald Trump (TRUMP), his wife Melania Trump (MELANIA), the LIBRA token, and a personality-driven token linked to online influencer Hailey Welch (HAWK).
While these launches attracted widespread attention and speculative trading, critics have questioned the transparency and legitimacy behind some of the campaigns, raising concerns over whether hype and celebrity affiliations were used to mask deeper structural or ethical issues within the launches.
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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.
