US Lawsuit Blames Meteora Founder for MELANIA and LIBRA Token Collapse
A newly filed US class motion lawsuit accuses Meteora founder Benjamin Chow of orchestrating the notorious Libra and Melania meme coin schemes.
The submitting argues that the meme coin fraud allegedly used First Lady Melania Trump and Argentine President Javier Milei as promotional “props.”
Plaintiffs Blame Meteora Founder for Melania, Libra Coin Collapse
According to the amended submitting in Hurlock v. Kelsier Ventures, traders declare Meteora and Kelsier Ventures “borrowed credibility” from public figures to legitimize the MELANIA and LIBRA tokens, calling them a coordinated “liquidity lure.”
Both cash surged after launch however later plunged by over 90%.
“Defendants borrowed credibility from real-world figures or themes—such because the ‘official Melania Trump’ coin ($MELANIA) and the ‘Argentine revival’ coin ($LIBRA) tied to President Javier Milei. These faces and manufacturers served as props to legitimize what was really a coordinated liquidity lure. Plaintiffs don’t declare these public figures have been culpable; they have been merely the window dressing for a criminal offense engineered by Meteora and Kelsier,” the submitting mentioned.
In Argentina, the LIBRA scandal has widened right into a legal probe focusing on two of Milei’s aides after pockets knowledge linked them to pre-launch transfers. Over 1,300 residents reportedly misplaced funds, contradicting Milei’s televised declare that “not more than 5” traders have been affected.
Melania Trump not too long ago revived her Solana-based meme coin by way of an AI-generated video. Prices briefly rose earlier than falling once more. Analysts flagged $30 million in unexplained token gross sales from crew wallets, elevating transparency considerations.
Defense, Regulation, and Market Context
Chow, who resigned in February, beforehand denied wrongdoing on X. He mentioned neither he nor Meteora acquired tokens or insider data. Chow described the “Dynamic Liquidity Market Maker” as a permissionless instrument supporting impartial launches fairly than a buying and selling entity.
A US choose has unfrozen $57.6 million in USDC tied to the case, citing doubts in regards to the plaintiffs’ possibilities. The submitting additionally names Hayden Davis and Kelsier Ventures, alleging they ran at the very least 15 token launches utilizing the identical template.
The lawsuit arrives as regulators debate easy methods to classify meme cash. In February, the SEC stated that meme cash are “akin to collectibles,” ending securities-law enforcement however leaving fraud instances to businesses just like the CFTC.
Analysts warn the relaxed stance might embolden speculative issuers. Regulators from the UK to Singapore are additionally weighing whether or not such tokens fall beneath consumer-protection legislation as a substitute of monetary regulation.
According to Galaxy Research, greater than 32 million meme cash now commerce on Solana, which holds 30% of decentralized-exchange quantity. Most merchants lose cash inside seconds, whereas infrastructure operators seize most earnings—reflecting a casino-like system that rewards deployers over members.
An a16z Crypto report discovered that over 13 million meme cash launched final 12 months, however exercise fell 56 p.c as bipartisan laws superior towards clearer oversight. Analysts mentioned the slowdown reveals early saturation and investor fatigue with celebrity-driven tokens.
Although no costs goal Trump or Milei, the criticism underscores a rising conflict between crypto populism and regulatory inertia. As meme cash evolve from jokes into world liquidity occasions, courts and voters should now determine the place free-market innovation ends and monetary misconduct begins.
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