Burwick Law’s LIBRA Class-Action Lawsuit Moves to Federal Court Amid Allegations of Fraudulent Promotions

• Burwick Law’s landmark class-action lawsuit against LIBRA promoters has transitioned to federal court, spotlighting key players in the crypto scandal.

• The case has been combined with a similar lawsuit involving the M3M3 token, further complicating the landscape for those accused.

• Significantly, Burwick’s suit seeks civil penalties targeting private investors, diverging from Argentina’s criminal probes.

Burwick Law’s federal class-action suit against LIBRA and M3M3 token promoters focuses on civil penalties instead of criminal charges, highlighting unique aspects of the crypto scandal.

US LIBRA Lawsuit Goes Federal

The LIBRA meme coin scandal has significantly shaken the foundations of Argentina’s cryptocurrency community, prompting ongoing local investigations against prominent figures such as President Javier Milei. However, a class-action lawsuit initiated two months prior in the United States against LIBRA backers has now transitioned into federal court.

LIBRA COIN LITIGATION UPDATE:
Defendant Ben Chow filed a Notice of Removal on May 9, shifting this class-action case from state court to U.S. federal court (SDNY). The LIBRA token is reported to involve on-chain losses nearing $400 million. pic.twitter.com/gxm4IA7OTE

— Burwick Law (@BurwickLaw) May 12, 2025

Reports indicate that U.S. investors constituted a significant portion of LIBRA buyers, potentially justifying federal intervention. However, no U.S. enforcement agencies have pursued criminal charges, positioning Burwick’s civil-focused case uniquely against numerous backers, including Kelsier’s Hayden Davis.

The decision to pursue civil lawsuits instead of targeting high-profile officials like a sitting president offers a more manageable approach for plaintiffs. Notably, an Interpol warrant was already issued for Davis’ arrest in March, underlining the gravity of the claims being made.

Benjamin Chow, previously an executive at Meteora, is also a defendant in this case. His request for a transition to federal court was approved by Judge Jennifer Rochon, emphasizing the importance of this legal maneuver.

Multiple Scam Tokens Scrutinized

The combination of the LIBRA lawsuit with an ongoing legal battle surrounding the M3M3 token reinforces the complexities involved. Allegations indicate that Hayden Davis was implicated in multiple fraudulent activities involving various rug pulls and scam tokens, persisting even after the LIBRA incident.

Burwick Law is currently spearheading a separate class-action suit focused on M3M3, which is believed to have employed similar promotional strategies as LIBRA.

This legal group, linked to the $LIBRA token, previously collaborated with Meteora and KIP. Their operations were heavily scrutinized, especially given the contexts of insider information likely transmitted through networks like the Fantom Troupe. pic.twitter.com/8g97b2rwWT

— Beanie (@beaniemaxi) February 16, 2025

By consolidating these cases, the court aims to enhance efficiency, allowing for the observation of behavioral patterns among the accused. This broader legal approach could bolster Burwick’s chances of success by avoiding complications from Argentinian political landscapes.

In focusing solely on private backers accused of fraud, Burwick Law aims to pursue compensation while ensuring that the domestic prosecution efforts in Argentina remain unencumbered.

Conclusion

Burwick Law’s transition of the LIBRA lawsuit into federal court reflects a strategic decision to focus on civil remedies, which may yield more achievable results compared to ongoing criminal investigations in Argentina. As the case unfolds, observers will be watching closely to determine how these intertwined legal battles over LIBRA and M3M3 tokens impact the broader cryptocurrency landscape.