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Ben Chow steps down from Meteora as allegations of insider trading in the Libra meme coin spark controversy in the Solana ecosystem.
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Independent investigation launched by Fenwick & West to examine claims of misconduct, with industry leaders urging higher ethical standards.
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Crypto community reacts strongly, calling for transparency and accountability to prevent further speculative and fraudulent token launches.
Solana-based DeFi platform Meteora is now searching for new leadership following co-founder Ben Chow’s resignation amid controversy surrounding the Libra meme coin.
Libra remains controversial, adding to the Solana-based projects that have turned heads over the last few months.
Meteora’s Ben Chow Steps Down as Scandal Unfolds
Meow, the pseudonymous founder of decentralized exchange (DEX) Jupiter and co-founder of Meteora, revealed the news in a statement on Tuesday on X (formerly Twitter).
Meow addressed the situation in a lengthy post, affirming that neither Jupiter nor Meteora had engaged in insider trading or financial misconduct regarding the Libra meme coin. He also announced that an independent third party, Fenwick & West—one of the most reputable law firms globally—has been hired to investigate the matter and publish an independent report.
“I stand by Ben and his statement. I believe him when he says there was no financial inappropriateness in dealing with partners…While I am 100% confident about Ben’s character, as a project lead he has also shown a lack of judgment and care about some of the core aspects of the project…and this is unfortunately unacceptable. Ben understands this and has chosen to resign,” Meow wrote.
Chow’s resignation marks a turning point for Meteora, as the DeFi platform will search for new leadership. Meow urged the community to remain fair to Chow while he worked to clear his name, emphasizing his past contributions to the ecosystem.
This development stems from Kelsier Ventures CEO Hayden Davis’ claims that Libra’s team engaged in insider trading, sniping their token at launch. He made the remarks in a video interview with investigator Coffeezilla.
Davis, who previously played a role in Melania Trump’s MELANIA coin, stated that pre-launch insider knowledge is a standard procedure in major meme coin launches. In response, Chow denied direct involvement with Libra beyond IT support.
“For $LIBRA, although we were made aware of the possibility of it several weeks ago by Hayden, we had no involvement in the project at all beyond providing IT support, including commenting on the liquidity curve and helping verify the token’s authenticity after the token was publicly launched. Neither I nor the Meteora team compromised the $LIBRA launch by leaking information, nor did we purchase, receive, or manage any tokens,” Chow defended.
However, Chow admitted that he had referred Davis and Kelsier Ventures to multiple projects as token deployers. He also added that this led him to trust Davis and Kelsier, referring them to other projects, including the Melania Trump token.
Video Leak Raises Further Questions
The controversy deepened when a video posted by SolanaFloor on X appeared to capture a conversation between DefiTuna founder Dhirk and Chow. In the video, Dhirk alleged that he witnessed Kelsier team members engaging in token sniping.
Chow, seemingly shocked, responded, “I feel so sick because I gave him Melania… I enabled the guy that should not have been enabled… I’m going to have to step down, I’m going to have to quit.”
Despite these revelations, Meow firmly believes that Chow was not financially complicit in wrongdoing. However, he acknowledged that the controversy had damaged Meteora’s reputation, necessitating a leadership change.
“Going forward, we will be looking for new leadership for Meteora,” Meow concluded.
Experts Comment on Libra Meme Coin Implications
The scandal has sparked broader discussions within the crypto space regarding ethical standards in token launches. In a statement shared with COINOTAG, Chris Chung, founder of Solana-based swap platform Titan, said that the DeFi community must call out extractive behavior to prevent similar issues in the future.
“The entire LIBRA meme coin fiasco over the weekend should serve as a reminder that all of us in the DeFi community have a responsibility to make this space safer for users,” Chung said.
He added that DEXs must carefully consider how retail users interpret token verifications. Specifically, even small gestures like a “verified” label can be misconstrued as an endorsement.
Similarly, Harrison Seletsky, director of business development at SPACE ID, warned that the Libra controversy highlights a troubling trend in crypto. He argued that the industry is at a tipping point and must pivot away from speculative trading toward genuine utility.
“The LIBRA meme coin, endorsed by Argentine president Javier Milei, has shown the worst side of cryptocurrency for all the world to see. We need to evaluate where the crypto industry is going and who is truly benefiting. Right now, it isn’t the average investor—it’s insiders who pump and dump tokens to their own advantage,” Seletsky told COINOTAG.
In the same tone, Solana meme coin launchpad Pump.fun founder Alon expressed disgust about the events surrounding Libra on X. The Pump.fun executive called for witnesses to speak out. His rebuke comes as Pump.fun’s establishment centers on efforts to prevent fraudulent token launches on Solana.
“The people behind this project made substantial personal gains at the expense of many users, the ecosystem, and even an entire country. I hope the people responsible get what they deserve,” Alon shared.
Conclusion
The fallout from the Libra meme coin scandal illustrates the urgent need for accountability and ethical conduct within the crypto space. Industry leaders and community members are demanding stricter regulations to safeguard retail investors. The events of this week have undoubtedly raised awareness around predatory practices in the sector, potentially paving the way for reform that prioritizes transparency and integrity.
