The Libra token scandal is set to review the Supreme Court of New York after a newly filed class action accused the creators of misleading investors and absorbing more than $ 100 million from one side pools of liquidity.
Burwick Law filed a suit on behalf of its clients against Kelsier Ventures, Kip Protocol and Meteora on March 17 for the launch of the Libra (Libra) token in a “deceptive, manipulative and starting unfair” way. The token was then promoted by Argentine President Javier Milei to X as an economic initiative to stimulate private sector funds in the country.
The law firm has stabbed two crypto infrastructure and launching companies behind Liba-Kip and Meteora-claimed that they used a “predator” one-sided liquidity pool to artificially fall into memecoin price, allowing Insiderrs to earn While “sun -day -to -day consumers have provided losses.”
Within a few hours, the insiderrs “quickly absorb approximately $ 107 million from the pools of liquidity,” causing a 94% crashing over the Libra market value, Burwick Law Says With a filing of March 17 shared with X.
Source: Burwick Law
President of Mercy was noted in the lawsuit but was not named a defendant.
Burwick accused the defendants of the seizure of Milei’s influence of aggressively to promote the token, which deliberately created a false sense of legitimacy and misleading investors about the economic potential.
Approximately 85% of Libra’s tokens have been restrained from the launch and the “predatory infrastructure methods” allegedly used by the defendants are not revealed to investors, Burwick said.
“These tactics, accompanied by removal about real liquidity structures, have left the investors of material information.”
Burwick is looking for compensatory and punitive damages, the disgorgement of “unfairly acquired” income and injective relief to prevent further deceptive token offerings.
Related: The law firm demands pump.fun remove more than 200 memecoins using its IP
Data from blockchain research firm Nansen found that in 15,430 largest Libra books it has reviewed, more than 86% of those sold in loss, Integration -Includes $ 251 million in losses.
Only 2,101 profits have earned a home of a combined $ 180 million income, Nansen mentioned in a Feb report. 19.
The venture capital firm behind the Libra token, Kelsier Ventures, and its CEO Hayden Davis, seemed two in Largest winner From the launch of the token. They are claim to have a net around $ 100 million.
Davis, who is now faced with a potential Interpol red notice Following the request of the Argentine attorney, it was said in Feb. 17 He does not directly own tokens and will not sell them.
Milei, meanwhile Frauds The filed against him is said to be – and instead “just spread the word” about it.
The Argentina’s Party Calls Opposition Milei’s impeachment But there was a limited success so far.
Magazine: Meet attorney Max Burwick – ‘The Ambulance Chaser of Crypto’
