Makers of the Libra token have to face a US Court of Justice after investors have submitted a complaint against them for misleading Mememe coin dealers.
The well-known crypto law firm Burwick Law announced that she had submitted a lawsuit against Kelsier Ventures, KIP Protocol and Meteora because of their participation in the scales token and applied for compensation for compensation and the discharge of the profits of the accused.
The collective complaint complaint
According to reports, the Supreme Court of New York should hear the case of the Libra-token scandal after the Meme Coin investors had run after the companies connected to the token because they misleaded its dealers and allegedly sucked off more than $ 100 million from one-sided liquidity pools.
Tonight our law firm submitted a class action lawsuit to the Supreme Court of New York on behalf of our client. We claim that Kelsier, KIP, Meteora and related parties organized an unfair token start ($ Wazia), which supposedly mislead buyers and damage retail investors. pic.twitter.com/h7dd2laark
– Burwick Law (@burwicklaw) March 18, 2025
According to Burwick Law, the lawsuit submitted the lawsuit on behalf of his clients, which were misguided by Kelsier Ventures, KIP Protocol and Meteora on the scale (Libage) token, and said that the Creator of the Mememen did it in a “deceptive, manipulative and basic nature”.
The law firm mentioned in the complaint that the scales used the top -class confirmation of the Argentine President Javier Milei to give an impression of legitimacy and that token has a significant investment value.
One -sided liquidity pool
Burwick Law criticized KIP and Meteora, two important crypto companies behind the scales because they used a “predatory” one -sided liquidity pool to artificially increase the Memecoin price and benefit insiders, while “everyday buyers boring the losses”.
“We also claim that about 85% of the offer was withheld at the start, so that insiders gain to win, while everyday buyers were wearing losses,” said the law firm.
According to the lawsuit, the Creator of the Libra made it possible to extract stable assets such as USDC and SOL discreetly and systematically as soon as the trade began. “Within a few hours, the insiders of the accused quickly shot around 107 million US dollars from liquidity pools, which led to an immediate collapse of 94% in the tokens’ market assessment,” said the law firm.
When you have lost money $ WaziaContact Burwick Law to learn something about your legal rights.
Our company represents thousands of customers who want to get their money back for crypto desires.
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– Burwick Law (@burwicklaw) February 15, 2025
Deception
Burwick Law emphasized that the defendants used a misleading tactic by not having to secretly monetize potential buyers about “the true liquidity structures, the insider control of token care and conscious mechanisms that were to be insverted.”
“Our submission claims that these tactics in connection with omissions about the true liquidity structures have deprived of the investors of material information. As stated in the complaint, this is said to cause a quick breakdown in the value creation of the $ Libra after insiders secretly withdrawn millions in stable assets,” said the law firm.
The law firm believes that this is important to throw light on practices, the “retail buyers harm” that must be addressed in court.
Selected picture of Reuters, Diagram by Tradingview
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