Burwick Law has taken legal action against key figures involved in the LIBRA meme coin controversy, filing a class-action lawsuit in the Supreme Court of New York. The case targets KIP, Meteora, and Kelsier, accusing them of misleading investors and manipulating the token’s price. Notably, the lawsuit does not include Argentine President Javier Milei , despite his name being linked to the project. The legal firm alleges that these parties artificially inflated LIBRA’s value before causing its collapse, a tactic commonly known as a pump-and-dump scheme. The LIBRA token launch, which took place in February, quickly turned into a scandal. Burwick Law claims that a one-sided liquidity pool was used to create the illusion of demand, allowing insiders to profit while leaving retail investors at a loss. According to the lawsuit, around 85% of the total token supply was withheld at launch, enabling those with early access to maximize their gains while others unknowingly bought at inflated prices. This deceptive practice has led to a series of investigations and legal actions. KIP Protocol, one of the companies named in the lawsuit, has denied any involvement in LIBRA’s financial misconduct. The firm insists that it was only asked to assist in managing project financing and had no direct role in the token’s launch or market operations. However, Meteora, a decentralized exchange that played a significant role in LIBRA’s debut, has found itself in deeper trouble. Its co-founder resigned shortly after the controversy erupted but maintains that he had no part in any fraudulent activity. Meteora’s reputation was already under scrutiny following its involvement with the controversial TRUMP meme coin , which significantly increased the platform’s total value locked (TVL) before crashing. This pattern of hosting questionable projects has raised doubts about the exchange’s due diligence in approving token listings. Kelsier Ventures, another key player in the LIBRA launch, appears to be at the center of the controversy. Its CEO, Hayden Davis , has openly admitted to past scams and defended his actions, claiming they were standard industry practices. His remarks have only fueled concerns about unethical behavior in the crypto space. Davis, who was in talks to launch a similar meme coin in Nigeria, now faces an active arrest warrant , making him the most legally vulnerable figure in the scandal. Investigators have also linked the parties behind LIBRA to two other Argentina-themed tokens, ARG and MILEI. Evidence suggests these tokens may have been created as test runs before the LIBRA launch, as they share the same wallets, liquidity pools, and transaction patterns. The lawsuit raises critical questions about regulatory oversight in the cryptocurrency market. While meme coins have gained popularity, cases like LIBRA highlight the risks associated with unregulated launches and potential market manipulation . The lack of transparency in token distribution and liquidity management has once again drawn attention to the need for stronger safeguards to protect retail investors. For now, it remains uncertain how the lawsuit will unfold. Legal experts believe the case could set a precedent for holding token issuers accountable for deceptive practices. If successful, it may encourage stricter regulations and improve trust in the industry. However, unresolved questions surrounding the LIBRA scandal could complicate the legal process. The crypto community will be closely watching as the investigation progresses, hoping for clarity and justice.
