New York Law Firm Launches Class Action Lawsuit Over LIBRA Token Scandal

In a significant legal move, New York-based Burwick Law has initiated a class action lawsuit against Kelsier Ventures, KIP Protocol, and Meteora, accusing the entities of orchestrating a deceptive launch surrounding the LIBRA token.

Filed on March 18, 2025, the lawsuit alleges that the token’s developers engaged in manipulative practices that misled investors and drained millions from retail traders. The case centers on claims that the developers falsely promoted LIBRA as a tool to bolster Argentina’s economy while secretly controlling its liquidity to benefit insiders, leaving everyday investors to bear the financial fallout.

The LIBRA token, launched on the Solana blockchain on February 14, 2025, initially soared to a market value of $4.4 billion. Its rapid rise drew attention, bolstered by an endorsement from Argentine President Javier Milei, who framed it as an economic innovation for his country. However, the lawsuit contends that this promise was a facade.

Court documents reveal that the developers allegedly rigged the token’s debut by employing a one-sided liquidity pool and hoarding 85% of the supply. When trading commenced, insiders reportedly extracted $107 million, triggering a staggering 94% price drop that erased over $280 million in value and impacted nearly 75,000 traders. Burwick Law asserts that this scheme allowed those in the know to siphon stable assets from unsuspecting buyers, all while maintaining an illusion of legitimacy.

Political and Global Ramifications Emerge

The fallout from the LIBRA collapse, now dubbed “Cryptogate,” extends beyond the courtroom. In Argentina, the scandal has sparked political turbulence. Opposition leaders have seized on the controversy, calling for President Milei’s impeachment over alleged ties to the fraud. With midterm elections looming later this year, analysts suggest that the crisis could undermine Milei’s reputation as a reformer committed to economic stability and transparency.

Adding to the international dimension, Argentine attorney Gregorio Dalbón escalated matters on March 12, 2025, by requesting an Interpol Red Notice for Hayden Davis, CEO of Kelsier Ventures. Dalbón argued that Davis’s wealth could enable him to flee justice, prompting a global alert to locate and detain him pending extradition proceedings.

The lawsuit also sheds light on troubling details which found that insiders, including Kelsier Ventures, accessed LIBRA tokens before the public launch. This early access reportedly netted them over $100 million through strategic trades and liquidity maneuvers, further fueling accusations of insider trading and market manipulation. Burwick Law’s legal action seeks not only financial restitution for affected investors but also aims to set a precedent to deter similar schemes in the crypto space. The firm’s efforts underscore a growing push to hold crypto developers accountable amid a wave of high-profile scandals that have shaken investor confidence.

As the case unfolds, the LIBRA token’s dramatic rise and fall serve as a cautionary tale. What began as a purported economic lifeline for Argentina has morphed into a sprawling controversy with legal, political, and financial repercussions. For the thousands of traders leftover from the crash, the lawsuit represents a glimmer of hope for justice.