Kelsier Ventures, KIP Protocol, and Meteora face a class-action lawsuit filed by Burwick Law in New York, claiming they misled investors during the Libra token launch, which raised approximately $107 million. The lawsuit accuses the defendants of using a predatory one-sided liquidity pool to artificially inflate the token's price, leading to significant losses for investors as the market value of LIBRA plummeted by 94%. The firm claimed that 85% of the tokens were withheld at launch while critical information regarding liquidity structures was not disclosed to investors. Argentine President Javier Milei allegedly promoted LIBRA as an economic initiative, which Burwick Law argues created a false sense of legitimacy. The firm is seeking compensatory and punitive damages, as well as the return of profits obtained through deceptive means. The class-action suit also cites blockchain research indicating that most large LIBRA wallets suffered total losses, with only a small percentage realizing profits. Amid these developments, Milei has distanced himself, asserting he merely 'spread the word' about the token.

Source 🔗