TLDR
- In a decisive move, Burwick Law has initiated a class-action lawsuit targeting the masterminds at Kelsier Ventures, KIP Protocol, and Meteora for allegedly executing a misleading launch of the LIBRA memecoin.
- LIBRA initially garnered legitimacy, largely due to enthusiastic support from Argentina's President, Javier Milei. However, it plummeted by 94% after insiders allegedly siphoned off $107 million.
- Allegations are flying in the lawsuit that developers manipulated the markets using 'predatory' liquidity pools, inflating prices unfairly while holding onto 85% of the token supply.
- A deep dive from blockchain analysis firm Nansen highlights a grim picture where investors collectively faced losses amounting to $251 million, while some prominent wallets walked away with $180 million.
- Hayden Davis, once at the helm of Kelsier Ventures and reportedly pocketing $100 million, now finds himself potentially on the radar of Interpol.
A significant class-action lawsuit has been filed in New York's Supreme Court against those behind the LIBRA memecoin, marking it as a standout scandal of 2025 involving Kelsier Ventures, KIP Protocol, and Meteora.
Filed on March 17 by Burwick Law, the lawsuit stands on behalf of defrauded investors, pointing at the LIBRA token as being launched under deceptive, manipulative, and fundamentally unfair conditions.
LIBRA caught the world's eye thanks to Argentine President Javier Milei's promotions via X, dressing it up as a grand opportunity to boost Argentina's private sector.
We took action tonight, lodging a class action in New York’s highest court, representing our client’s claims that Kelsier, KIP, Meteora, and associates ran an unfair $LIBRA token launch, misleading countless retail investors. pic.twitter.com/H7dD2LaARK
— Burwick Law (@BurwickLaw) March 18, 2025
The grievance filed outlines that developers employed a 'predatory' liquidity strategy to concoct a bloated market price while insiders reaped profits, leaving others to swallow the losses.
Within mere hours post-launch, insiders are alleged to have drained around $107 million from liquidity pools, triggering LIBRA’s value to cascade by an eye-watering 94%.
It’s been alleged that a staggering 85% of the LIBRA tokens weren’t even released initially, a fact not disclosed to eager investors.
Dissecting the collapse of a $251 million memecoin scandal, reveals the far-reaching impact of LIBRA’s downfall.
According to Burwick Law, leveraging President Milei's influence, the defendants spun an aura of legitimacy around the token, deluding investors about its economic potential.
The law firm doesn't hold back on seeking varied remedies for affected investors, grappling for both compensatory and punitive damages, alongside a bid for the return of profits deemed 'unjustly obtained'.
Nansen's investigative efforts brought to light a stark reality post-LIBRA crash. Out of 15,430 notable wallets, a staggering 86% sold at a loss, clocking in total losses at about $251 million.
In contrast, only a minority of 2,101 wallets navigated to profitability, boasting collective gains of $180 million.
Kelsier Ventures, along with CEO Hayden Davis, appear to have seized the launch's faulty opportunities, amassing a substantial $100 million.
Beyond the lawsuit's realm, Davis might also face broader legal challenges as an Argentine attorney is pushing for an Interpol red notice. Despite ongoing controversies, Davis insisted on February 17 that he wasn’t a token owner and wouldn’t opt for a sell-off.
Finding himself in turbulent currents, President Milei attempts to step back from the debacle, claiming he didn’t endorse strongly but merely mentioned the LIBRA token, a nuance his detractors remain unsatisfied with.
In Argentina, political tremors from the scandal raised calls for President Milei's impeachment led by the opposition party, although these movements have yet to gather significant momentum.
Launched on Solana’s blockchain on February 14, the LIBRA token skyrocketed to a $4.4 billion market cap before facing a severe drop. This mishap, now dubbed 'Cryptogate', has shaken industry foundations.
