Libra memecoin creators face $107M class-action lawsuit

Kelsier Ventures, KIP Protocol, and Meteora have been named as defendants in a class-action lawsuit filed in the Supreme Court of New York over their alleged role in the Libra token scandal.

The lawsuit, filed by Burwick Law on March 17, accuses the firms of orchestrating a "deceptive, manipulative, and fundamentally unfair" launch of the Libra (CRYPTO:LIBRA) token, which resulted in investors losing approximately $107 million.

The complaint alleges that the defendants used a "predatory" one-sided liquidity pool to inflate the token's value artificially.

This allowed insiders to profit while retail investors suffered significant losses.

Within hours of its launch, LIBRA's market value plummeted by 94%, with insiders allegedly siphoning millions from liquidity pools.

The lawsuit also claims that Argentine President Javier Milei promoted the token on social media, creating a false sense of legitimacy.

Although Milei is not named as a defendant, his involvement has drawn scrutiny.

Burwick Law argues that his endorsement misled investors about the token’s economic potential.

The firm is seeking compensatory and punitive damages, disgorgement of profits, and injunctive relief to prevent future fraudulent token launches.

Blockchain research firm Nansen revealed that over 86% of LIBRA traders incurred losses totaling $251 million.

Conversely, just 2,101 wallets recorded profits amounting to $180 million.

Kelsier Ventures and its CEO Hayden Davis are reported to be among the biggest beneficiaries, allegedly netting around $100 million.

Davis has denied direct ownership of the tokens and stated he would not sell them.

Meanwhile, President Milei has distanced himself from the controversy, claiming he merely "spread the word" about LIBRA rather than promoting it.

Calls for his impeachment have emerged from Argentina’s opposition party, though progress remains limited.