Burwick Law filed a lawsuit against Meteora and other LIBRA supporters.

Burwick Law, a law firm based in New York, has filed a class-action lawsuit against the main parties involved in LIBRA – the Argentina memecoin scandal. The lawsuit specifically targets KIP, Meteora, and Kelsier, but not President Javier Milei.

In the past few months, this company has filed lawsuits against several memecoin projects. They allege that these parties have engaged in serious financial violations.

LIBRA accessories in New York

With recent actions, Burwick Law appears to be engaging in a legal battle against memecoin scammers. In December, the firm filed a lawsuit against the promoters of Hawk Tuah. A month later, they sued Pump.fun for intellectual property infringement.

Yesterday, Burwick filed a class-action lawsuit again, this time regarding the memecoin LIBRA.

"Our company has filed a class action lawsuit in the New York Supreme Court on behalf of our clients. We accuse Kelsier, KIP, Meteora, and related parties of conducting an unfair token issuance (LIBRA), alleging deception of buyers and harm to retail investors," the company stated via social media.

The LIBRA issuance in February turned into a serious disaster. In addition to this lawsuit, authorities are also conducting investigations and arresting key figures involved.

Essentially, Burwick accused some stakeholders of LIBRA of engaging in "fraud, manipulation, and fundamentally unfair practices." These individuals artificially inflated the token price and then caused a collapse – referred to as a pump & dump action.

Surprisingly, this lawsuit does not mention Argentine President Javier Milei as a defendant. Besides being an important political figure, Milei has also tried to downplay his direct involvement in the scandal.

Instead of targeting him, Burwick's lawsuit focuses on the private companies that directly facilitated the issuance of LIBRA: KIT, Meteora and Kelsier.

"The lawsuit details how one-sided liquidity pools were used to artificially inflate the price of the LIBRA token. We also allege that approximately 85% of the supply was withheld at launch, allowing insiders to profit while ordinary buyers suffered losses," said Burwick Law.

Who are the players behind the LIBRA scandal?

The original name behind the release of the memecoin LIBRA was KIP Protocol, a foundational Web3 AI platform. However, this company completely denies all allegations related to rug-pulling.

KIP claims that they do not issue or profit from LIBRA and are only asked to "support the management of the project's financial initiative." However, other companies have a clearer connection.

Meteora, a decentralized exchange, has been deeply involved in the LIBRA case. The co-founder of the company resigned immediately after the incident but maintains their position of innocence.

In particular, the reputation of Meteora has been severely impacted due to the memecoin TRUMP. This small exchange was the first platform to list the token, driving its TVL value up by more than 300% in a few days, reaching over 1.9 billion.

Kelsier Ventures, the market maker of LIBRA, seems particularly susceptible to lawsuits. In a shocking interview, CEO Hayden Davis justified his actions, admitting to past scams and asserting that he did nothing out of the ordinary.

Davis has negotiated to launch a similar memecoin along with the Nigerian government and has recently been involved with a memecoin themed "Wolf of Wall Street." It is no surprise that Davis is the only one with an active arrest warrant among all the names related to the scandal.

Additionally, data engineer Fernando Molina accused these parties of attempting to release two other tokens focused on Argentina before the release of LIBRA. Some clear traces connect them to ARG and MILEI, such as shared wallets, liquidity records, and release timing. Molina suggests that the creators of LIBRA may have created these assets as trial coins, but it is uncertain.

The assets may have been launched by the LIBRA team | Source: Fernando MolinaThere are still many unanswered questions about the LIBRA scandal and it is still unclear how they will affect the lawsuit. Hopefully, investigations will help clarify some of the biggest mysteries.

In any case, political memecoin plans like this can harm the reputation of the entire industry. Therefore, the current lawsuit from Burwick may be in the common interest of everyone.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

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Dinh Dinh

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