Burwick Law Files Lawsuit Against Key Figures in LIBRA Token Launch
Burwick Law has filed a lawsuit against key figures in the launch of the LIBRA token, known as the meme coin, in New York Supreme Court. The lawsuit targets KIP, Meteora, and Kelsier, who are alleged to have misled investors and manipulated the token’s value. Notably, Argentine President Javier Milei is not a party to the lawsuit, although he is associated with the project. The firm claims that those involved artificially inflated the value of LIBRA, later precipitating its collapse in a classic pump-and-dump maneuver.
The launch of the LIBRA token in February quickly turned into a scandal. Burwick Law claims that a one-sided liquidity pool was used to create a false impression of demand, allowing insiders to benefit at the expense of retail investors. According to the lawsuit, around 85% of the initial supply was withheld, allowing those with early access to profit while others bought in at inflated prices.
Tonight, our firm filed a class action complaint in the Supreme Court of New York on behalf of our client. We allege that Kelsier, KIP, Meteora, and related parties orchestrated an unfair token launch ($LIBRA), apparently misleading purchasers and harming retail investors.
— Burwick Law (@BurwickLaw)
March 18, 2025
KIP Protocol, one of the parties named in the lawsuit, has refuted any allegations of financial misconduct in connection with LIBRA. The company has stated that its involvement was limited to supporting the project’s funding, with no direct involvement in the token launch or market operations. However, Meteora, a decentralized exchange that played a significant role in LIBRA’s debut, faces greater challenges. Following the scandal, its co-founder resigned, although it denies any fraudulent activity.
Meteora’s reputation was already under scrutiny due to its involvement in the launch of the controversial TRUMP meme coin, which had increased the total value locked on the platform before its eventual decline. This tendency to host questionable projects raised questions about the exchange’s diligence in approving new tokens. Kelsier Ventures, also implicated in the LIBRA launch, saw its CEO, Hayden Davis, openly acknowledge previous questionable practices, justifying them as normal industry standards.
Davis, who is negotiating the launch of a similar coin in Nigeria, currently has an active arrest warrant, making him legally vulnerable in the scandal. Further investigation links those involved in LIBRA to two other Argentina-themed tokens, ARG and MILEI, indicating that these may have been prototypes for the launch of LIBRA, sharing similar wallets, liquidity pools, and transaction patterns.