2025-03-19
A lawsuit has been filed in New York
court against Kelsier Ventures, KIP Protocol, and Meteora for their role in the
Libra (LIBRA) token scandal.
These companies allegedly misled
investors and took around $107 million from them.
The lawsuit, filed by Burwick Law on
March 17, claims the companies used unfair tactics to inflate LIBRA’s price.
Once the price rose, insiders quickly
withdrew their funds, causing the token’s value to drop by 94%. Most regular
investors lost money.
Argentine President Javier Milei
promoted LIBRA on social media, but he is not being sued.
However, the lawsuit accuses the
defendants of using Milei’s influence to make the token seem legitimate and
attract investors.
The lawsuit states that 85% of LIBRA
tokens were kept back at launch, and the companies did not tell investors about
the unfair liquidity structure.
Burwick Law is asking for compensation
for investors, the return of illegal profits, and legal action to prevent
future scams.
Blockchain research firm Nansen found that 86% of large LIBRA investors lost money, totaling $251 million. Meanwhile, a small group of 2,101 investors made a total profit of $180 million.
Kelsier Ventures and its CEO, Hayden
Davis, were among the biggest winners, reportedly making $100 million. Davis
now faces a possible Interpol red notice but denies direct ownership of the
tokens.
President Milei has distanced himself
from LIBRA, saying he only shared information about it and did not promote it.
Argentina’s opposition party has called for his impeachment but has not been
successful.
