The Libra Token scandal is set to be reviewed by the New York Supreme Court after a newly filed class action lawsuit accusing misleading investors of misleading them and sucking up more than $100 million from a one-sided liquidity pool.
Burwick Law filed a lawsuit on behalf of its clients against Kelsier Ventures, KIP Protocol and Meteora on March 17, launching its Libra (Libra) token in a “deceptive, manipulative and fundamentally unfair” way. The token was subsequently promoted by Argentine President Javier Mailey as an economic initiative to stimulate the country’s private sector funding.
The law firm has slammed two crypto infrastructure and a Launchpad company behind Libra (KIP and Meteora).
Within hours, insiders “quickly sucked up about $107 million from the liquidity pool,” causing a 94% crash in Libra’s market value, Burwick Law said in a filing shared on X on March 17.
sauce: Berwick’s Method
President Miley was mentioned in the lawsuit but was not appointed as defendant.
Berwick accused the accused of using Mylay’s influence to actively promote tokens, deliberately creating a false sense of legitimacy and misleading investors about its economic potential.
Around 85% of Libra’s tokens were withheld at the launch, and the “predatory infrastructure techniques” that the defendant allegedly used were not disclosed to investors, Burwick said.
“These tactics are combined with omissions on true liquidity structures, which are robbing investors of material information.”
Berwick seeks injunctive relief to prevent compensatory and punitive damages, disgust of “unfairly acquired” profits, and further fraudulent provision of tokens.
Cointelegraph contacted the KIP protocol and Meteora, but did not receive an immediate response.
Related: Law firms request a pump.
Data from blockchain research firm Nansen found out that of the 15,430 largest Libra wallets surveyed, more than 86% of those sold at losses were combined with a loss of $251 million.
In a report on February 19, Nansen only managed to bring back a total of $180 million in profits with 2,101 profitable wallets.
The venture capital firm behind Kelsier Ventures’ Libra Token, and its CEO, Hayden Davis, were clearly two of the biggest winners since Token’s launch. They claim they won about $100 million.
Davis, who is currently facing a potential Interpol Red notice at the request of an Argentine lawyer, said on February 17 that he would not own or sell the token directly.
Meanwhile, Milei has distanced himself from Memecoin and claimed that he has not “promoted” the Libra token, as the fraud lawsuit filed against him alleges, and instead simply “spread the word” about it.
The Argentine opposition parties have called for Maylei’s blast each, but so far its success has been limited.
magazine: Meet Attorney Max Berwick – “Crypto Ambulance Chaser”
