After the launch and collapse of the cryptocurrency $LIBRA, the first class action lawsuit was filed in U.S. courts against the international parties responsible for the operation. The lawsuit involves the Davis family, Julian Peh, Benjamin Chow, and the firms Kelsier Ventures, Kip Protocol, and Meteora. The affected investors, represented by the law firm Burwick Law, seek compensation along with restitution of unjustly obtained profits, measures to prevent future token scams, and the appointment of a trustee to protect investors.
According to the lawsuit, the Defendants promoted the $LIBRA token as a legitimate product to foster economic growth in Argentina, resorting to a misleading narrative. New York courts were chosen as competent due to one of the parties involved, Ben Chow, and his company Meteora being based in that city, as well as several financial activities being linked to the financial markets of Manhattan.
The team at Kelsier Ventures, along with others involved, used the image of influential figures, such as Argentine President Javier Milei, to attract potential investors, promising to strengthen the Argentine economy. However, it was revealed that predatory practices were carried out to gain an unfair advantage over retail investors, artificially inflating the token's value and controlling market liquidity.
The class action seeks an audit of Meteora's accounts and to detail transactions related to $LIBRA and other similar crypto assets, as well as to protect all assets related to #LIBRA. Furthermore, the defendants are accused of creating a fraudulent scheme, artificially inflating the price of $LIBRA, and manipulating market dynamics to profit at the expense of retail investors.
The legal action, filed in the Supreme Court of the State of New York, represents over 200 victims of the cryptocurrency $LIBRA from various countries. This lawsuit could shed light on how $LIBRA was created, launched, and collapsed, revealing the roles played by those involved, including the Milei brothers and other Argentinians, in the questioned operations.
