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Burwick Law has initiated a class-action lawsuit against KIP, Meteora, and Kelsier, alleging deceptive practices tied to the LIBRA token launch.
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The lawsuit contends that these entities manipulated LIBRA’s price, resulting in significant financial losses for retail investors.
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Kelsier Ventures’ CEO, Hayden Davis, is currently facing an arrest warrant, intensifying the scrutiny surrounding LIBRA’s rollout.
This article explores the recent class-action lawsuit against key players involved in the LIBRA token launch, highlighting serious allegations of price manipulation.
A LIBRA Lawsuit in New York
In a bold legal maneuver, Burwick Law has positioned itself as a leading force against alleged scams in the meme coin space. The firm previously pursued similar legal actions against promotor entities associated with the Hawk Tuah and Pump.fun projects, establishing a pattern of holding meme coin projects accountable.
Most recently, on March 15, 2025, Burwick filed a class-action lawsuit focusing on the LIBRA meme coin. The firm raised concerns about the legitimacy of the launch, stating, “Tonight, our firm filed a class action complaint in the Supreme Court of New York alleging misconduct by Kelsier, KIP, Meteora, and other involved parties.”
Burwick’s allegations assert that the LIBRA launch devolved into a significant financial crisis. The lawsuit is intertwined with ongoing investigations into the practices surrounding the launch, as several key players are under scrutiny for potential criminal activities.
In their complaint, Burwick Law describes the alleged deceptive tactics used during the LIBRA launch, highlighting claims of a pump-and-dump scheme that adversely affected retail investors.
Who Were the Culprits Behind the LIBRA Scandal?
The principal entity associated with the LIBRA token is KIP Protocol, a project pitched as a Web3 AI-based layer. However, KIP has publicly denied involvement in any wrongdoing concerning the LIBRA token launch, asserting it merely acted as a managerial agency for financing.
Meteora, a crypto exchange with a significant role in launching LIBRA, faced backlash following the scandal. Although the co-founder resigned shortly after the launch, they maintained their innocence, attempting to disentangle their reputation from the fallout caused by LIBRA.
Kelsier Ventures, the market maker for LIBRA, appears most exposed to potential lawsuits. CEO Hayden Davis, despite his recent admissions of past misconduct, is under considerable pressure as an arrest warrant for him suggests severe discrepancies in his operations.
Additional claims have surfaced involving Fernando Molina, a data engineer, who indicated that there might have been attempts to launch other meme coins linked to Argentinian narratives before LIBRA. These connections involve shared liquidity pools and investor wallets, casting a wider net of suspicion on the motives behind LIBRA’s creation.
This ongoing situation raises pertinent questions surrounding the implications of such meme coin endeavors on the broader cryptocurrency market. The outcome of Burwick Law’s lawsuit could set a precedent for future regulatory actions against similar projects that potentially engage in deceptive practices.
Conclusion
The LIBRA class-action lawsuit brings critical attention to the vulnerabilities within the meme coin market, targeting key players and practices that may mislead investors. As Burwick Law continues its pursuit of justice for affected retail investors, it emphasizes the necessity for accountability in the rapidly evolving world of cryptocurrencies.
