Libra Meme Coin Scandal: Treanor Law Firm Seeks Investors After 97% Crash

A New York-based law firm has initiated a call for investors affected by the Libra (LIBRA) meme coin scandal, which involved Argentine President Javier Milei, to come forward. The Treanor Law Firm has been investigating the controversial Argentina-linked token since its high-profile launch in February and believes there may be validity to allegations of fraud, market manipulation, and racketeering. The firm is now seeking to connect with Libra investors as part of its ongoing investigation, which could lead to a potential lawsuit.

The Viva La Libertad Project and its LIBRA token were launched on February 14, marketed as a project aimed at boosting the Argentinian economy by funding small businesses. This initiative gained significant traction and promotion from President Milei, who added legitimacy to the project as it reached a market cap of $1.17 billion. However, the token's price crashed by 97% the following day after Milei deleted his promotional post and claimed no knowledge of the token's origins.

Tim Treanor, Managing Principal of the Treanor Law Firm, highlighted three key areas of inquiry: the representations made to induce investors to purchase the Libra coin, the actual sale and trading of the coin, and potential racketeering violations. Treanor noted that the firm is investigating whether the token's sale and trading were manipulated and whether there was a pattern of criminal behavior by individuals or groups involved.

President Milei had promoted the token on his social media account, claiming it was a private project dedicated to encouraging the growth of the Argentine economy. However, he later faced fraud charges in Argentina over his involvement and denied any prior knowledge of the project. The project was pitched to Milei by Kelsier Venture CEO Hayden Davis during a January meeting, with Mauricio Novelli and Manuel Godoy of Tech Forum Argentina also involved, although their exact roles remain unclear.

Treanor emphasized the importance of connecting with investors to understand their motivations and the extent of their losses. The firm has determined that over 75,000 wallets lost money on the token, totaling over $280 million in losses. The investigation also explores potential racketeering violations, which could allow victims to bring forward civil claims for three times the damages.

The LIBRA launch was linked to the launch of MELANIA, the official meme coin of U.S. First Lady Melania Trump, by analytics company Bubblemaps using on-chain data. This connection raised questions about the influence of Kelsier and other Libra actors within the project. Treanor noted that while many facts are available, the credibility of these allegations may ultimately be decided by a court.

Treanor, with nearly 30 years of legal experience, including over 16 years at major law firm Sidley Austin LLP, founded his own firm to bring his expertise in financial crime to crypto, fintech, and traditional finance. He believes in the potential of crypto but acknowledges the presence of malicious activity that needs to be addressed. The firm's investigation into Libra aims to bring change to the industry and hold those responsible accountable for their actions.