Class-Action Lawsuit Accuses Kelsier Ventures of $107M Libra Token Scam, 94% Crash

A class-action lawsuit has been filed in the Supreme Court of New York against Kelsier Ventures, KIP Protocol, and Meteora, alleging their involvement in the Libra token scandal. The lawsuit, filed by Burwick Law on March 17, accuses the defendants of misleading investors and siphoning over $100 million from one-sided liquidity pools. The Libra token, promoted by Argentine President Javier Milei, was launched in a manner described as "deceptive, manipulative, and fundamentally unfair" by the law firm. The lawsuit claims that the defendants used a "predatory" one-sided liquidity pool to artificially inflate the memecoin’s price, allowing insiders to profit while everyday buyers bore the losses. Within hours of the launch, insiders allegedly siphoned approximately $107 million from the liquidity pools, causing a 94% crash in LIBRA’s market value. The lawsuit also accuses the defendants of leveraging Milei’s influence to aggressively promote the token, creating a false sense of legitimacy and misleading investors about its economic potential. Approximately 85% of LIBRA’s tokens were withheld at launch, and the "predatory infrastructure techniques" used by the defendants were not disclosed to investors. Burwick Law is seeking compensatory and punitive damages, the disgorgement of "unjustly obtained" profits, and injunctive relief to prevent further fraudulent token offerings. The venture capital firm behind the LIBRA token, Kelsier Ventures, and its CEO, Hayden Davis, were among the biggest winners from the token launch, claiming to have netted around $100 million. Davis is now facing a potential Interpol red notice following an Argentine lawyer’s request. Milei has distanced himself from the memecoin, arguing that he did not promote it but merely spread the word about it. Argentina’s opposition party has called for Milei’s impeachment but has had limited success thus far.

The lawsuit highlights the complex and often opaque nature of the cryptocurrency market, where the lack of regulation and transparency can lead to significant financial losses for investors. The allegations against Kelsier Ventures, KIP Protocol, and Meteora underscore the need for greater oversight and accountability in the industry. The use of one-sided liquidity pools to artificially inflate the price of a memecoin and the subsequent siphoning of funds by insiders is a clear example of