A class action lawsuit accuses Meteora founder Benjamin Chow of orchestrating the launch and pump-and-dump schemes behind the Libra and Melania meme coins, using public figures like Melania Trump and Javier Milei as mere promotional props without their direct involvement in the alleged fraud.
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The lawsuit targets Chow and collaborators for launching multiple scam tokens, including LIBRA and MELANIA, which crashed dramatically after initial surges.
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On-chain analysis linked the wallets behind both coins, exposing a coordinated effort separate from Meteora’s legitimate operations.
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Plaintiffs allege at least 15 tokens followed the same blueprint, with Chow directing Kelsier Ventures in the schemes, leading to investor losses exceeding millions.
Discover the details of the Benjamin Chow Meteora lawsuit targeting Libra and Melania meme coin fraud. Uncover how founders allegedly used celebrity endorsements to scam investors—read now for key insights and updates.
What is the Benjamin Chow Meteora Lawsuit About?
The Benjamin Chow Meteora lawsuit is a class action case alleging fraud and racketeering in the creation and promotion of several meme coins, including the high-profile LIBRA and MELANIA tokens. Filed under Hurlock v. Kelsier Ventures, it names Chow, Meteora, and associates as defendants, claiming they engineered liquidity traps disguised as legitimate crypto projects. The suit emphasizes that while public figures like Melania Trump and Javier Milei lent their names or images, they bear no responsibility for the underlying criminal activity.
How Were the Libra and Melania Meme Coins Linked to This Fraud?
The LIBRA token, promoted by Argentine President Javier Milei as a means to support small businesses in Argentina, experienced a rapid value increase before plummeting 90% within hours, prompting Milei to remove his endorsements from social media. Similarly, the MELANIA coin, tied to First Lady Melania Trump, launched shortly after President Trump’s official token and saw a 99% crash following token dumps by the creators. On-chain analytics from Bubblemaps revealed shared wallet addresses between the launches of LIBRA and MELANIA, suggesting a unified operation.
According to the complaint, these tokens were part of a broader pattern involving at least five detailed examples and up to 15 total launches. The scheme allegedly relied on borrowing credibility from real-world figures or themes, such as Melania Trump’s name for MELANIA and Milei’s political image for LIBRA, to attract investors into what plaintiffs describe as a coordinated liquidity trap. Expert analysis from blockchain forensics firms supports this connection, highlighting unusual transaction patterns indicative of insider manipulation.
Benjamin Chow is positioned at the core of this enterprise, with the filing asserting that his separate infrastructure from Meteora’s automated market maker was used to execute these pump-and-dump operations. Collaborators included Ng Ming Yeow, Meteora’s co-founder and Jupiter affiliate, and the Davis family through Kelsier Ventures. Hayden Davis, Kelsier Ventures’ CEO, is accused of carrying out at least 15 token launches under Chow’s guidance, despite his public interviews following LIBRA’s collapse that downplayed his role.
Frequently Asked Questions
What Role Did Public Figures Play in the Benjamin Chow Meteora Lawsuit Tokens?
Public figures like Melania Trump and Javier Milei served as promotional elements without direct culpability, according to the lawsuit. Their endorsements or associations were used to build investor trust, but the complaint explicitly states they were window dressing for the fraud masterminded by Chow and his team. Investors suffered losses as tokens were dumped shortly after hype built around these names.
Why Did Benjamin Chow Resign from Meteora?
Benjamin Chow resigned from Meteora in February amid emerging details about the meme coin launches tied to the fraud allegations. As scrutiny intensified on his involvement in operations separate from Meteora’s core business, the move came just as on-chain links and legal filings began to surface, distancing the company from the controversy while the lawsuit progressed.
Key Takeaways
- Coordinated Fraud Scheme: The lawsuit details how Chow and associates launched tokens using celebrity ties to create artificial hype, leading to massive investor losses through planned dumps.
- On-Chain Evidence: Analytics from firms like Bubblemaps connected wallets across LIBRA, MELANIA, and other tokens, proving a shared blueprint for the scams.
- Legal Implications: Despite a judge unfreezing $57.6 million in USDC linked to LIBRA in August, the case continues, highlighting risks in unregulated meme coin markets—investors should prioritize verified projects.
Conclusion
The Benjamin Chow Meteora lawsuit underscores the vulnerabilities in the crypto space, particularly with meme coins like LIBRA and MELANIA that exploit public figures for legitimacy. By alleging a racketeering enterprise centered on Chow’s direction of Kelsier Ventures and others, the case aims to hold accountable those behind the fraud, even as judicial skepticism has led to partial asset releases. As investigations deepen with evidence from Telegram communications and blockchain data, this development signals a push for greater transparency and regulation in token launches, urging investors to exercise caution in emerging projects.
The filings from Burwick Law, representing the plaintiffs, emphasize private communications showing Chow’s commanding role, such as screenshots of Hayden Davis confirming operations under his instructions. While Kelsier Ventures and Chow have not publicly responded to these claims, the suit’s focus on factual on-chain evidence and coordinated actions aims to recover losses for affected investors. Meteora’s separation from these activities is noted, with the company maintaining its automated market maker services remain untainted by the alleged schemes.
Beyond the named tokens, the complaint outlines a consistent pattern: rapid marketing via social media and influencers, followed by liquidity extraction that left holders with worthless assets. Statistics from the case reveal investor impacts in the tens of millions, with LIBRA alone tied to frozen funds exceeding $57 million before the court’s ruling. Legal experts, including those from Burwick Law, stress that such operations erode trust in the broader cryptocurrency ecosystem, calling for stricter oversight on token deployments.
In related developments, the crypto community has seen increased scrutiny on Solana-based meme coins, where MELANIA originated, due to their volatility and ease of launch. The involvement of figures like Milei, whose LIBRA promotion aligned with his pro-crypto stance, highlights how political endorsements can inadvertently fuel scams. However, the lawsuit’s approach—exempting these figures while targeting the founders—sets a precedent for distinguishing hype from orchestration.
Looking ahead, ongoing proceedings in Hurlock v. Kelsier Ventures could influence future class actions against similar crypto frauds. Investors are advised to verify project teams and audit smart contracts before participating, especially in high-risk meme coin sectors. This case exemplifies the evolving legal landscape around digital assets, balancing innovation with investor protection.
