Creators of the LIBRA token must face a US court after investors filed a complaint against them for misleading traders of the meme coin.
Well-known crypto law firm Burwick Law announced that it has filed a lawsuit against Kelsier Ventures, KIP Protocol, and Meteora for their involvement in the LIBRA token, seeking compensation for damages and disgorgement of profits from the defendants.
The Class Action Complaint
Reports said that the Supreme Court of New York is set to hear the case of the LIBRA token scandal after the meme coin’s investors ran after the entities associated with the token for misleading its traders and allegedly siphoning more than $100 million from one-sided liquidity pools.
Tonight, our firm filed a class action complaint in the Supreme Court of New York on behalf of our client. We allege that Kelsier, KIP, Meteora, and related parties orchestrated an unfair token launch ($LIBRA), allegedly misleading purchasers and harming retail investors. pic.twitter.com/H7dD2LaARK
— Burwick Law (@BurwickLaw) March 18, 2025
According to Burwick Law, it filed the lawsuit on behalf of its clients who were misguided by Kelsier Ventures, KIP Protocol, and Meteora on Libra (LIBRA) token, saying that the creators of the meme coin did it in a “deceptive, manipulative and fundamentally unfair” manner.
The law firm mentioned in the complaint that Libra leveraged the high-profile endorsement of Argentine President Javier Milei to project an impression of legitimacy and that the token has significant investment value.
One-Sided Liquidity Pool
Burwick Law criticized KIP and Meteora, two key crypto entities behind LIBRA for using a “predatory” one-sided liquidity pool to artificially inflate the memecoin’s price, allowing insiders to profit while “everyday buyers bore the losses.”
“We further allege that approximately 85% of supply was withheld at launch, enabling insiders to profit while everyday buyers bore the losses,” the law firm said.
According to the lawsuit, it allowed the LIBRA creators to “discreetly and systematically extract stable assets” such as USDC and SOL, from investors once the trading began. “Within hours, the Defendants’ insiders rapidly siphoned approximately $107 million from liquidity pools, causing an immediate 94% collapse in the token’s market valuation,” the law firm stated.
If you lost money on $LIBRA, contact Burwick Law to learn about your legal rights.
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— Burwick Law (@BurwickLaw) February 15, 2025
Deceptive Tactic
Burwick Law emphasized that the defendants utilized a deceptive tactic by not informing potential purchasers of “the true liquidity structures, insider control of token supply, and deliberate mechanisms that allowed insiders to monetize token holdings secretly.”
“Our filing claims these tactics, combined with omissions about the true liquidity structures, deprived investors of material information. As stated in the complaint, this allegedly caused a rapid collapse in the $LIBRA Token’s value after insiders secretly withdrew millions in stable assets,” the law firm said.
The law office believes that this case is essential to shed light on practices that “could harm retail purchasers” that need to be addressed in court.
Featured image from Reuters, chart from TradingView
