Ben Chow, co-founder of Solana-based platform Meteora, has resigned amid insider trading allegations linked to the LIBRA token crash, which wiped out millions in investor funds within hours. The token, initially backed by Argentine President Javier Milei, lost over 90% of its value within hours of its launch, raising concerns of market manipulation.
Meteora’s pseudonymous co-founder, Meow, announced Chow’s resignation on X on Monday, citing his lack of judgment in the past few months as the primary reason. Meow emphasized that neither Meteora nor Jupiter, a decentralized exchange he also co-founded, engaged in insider trading or financial misconduct. However, the fallout from the LIBRA token crash has intensified scrutiny on high-profile token launches and their ethical ramifications.
LIBRA Token Collapse and Insider Trading Allegations
On-chain analysts have pointed to suspicious wallet activity surrounding LIBRA, suggesting that insiders may have offloaded tokens at peak prices before the crash. The rapid devaluation of the token resulted in significant financial losses for investors, triggering legal and political ramifications in Argentina.
Federal Judge María Servini in Buenos Aires has been assigned to investigate allegations of fraud against President Milei, who briefly endorsed the LIBRA token before its collapse. Several Argentine lawyers filed formal fraud charges against the president on Sunday, alleging misconduct linked to the crypto launch. While Milei has denied any wrongdoing, the case has intensified calls for an independent probe into the incident.
Chow’s Response and the Role of Kelsier Ventures
Chow initially defended Meteora’s role in the LIBRA launch, stating in a series of tweets on Saturday that the firm only provided technical support for the token’s creation. “The $LIBRA team used Meteora, which is a permissionless platform,” Chow wrote. “We never had any access to the tokens or to Milei.” He further clarified that Meteora did not participate in decision-making or market-making activities for the token.
However, as scrutiny mounted, Chow acknowledged concerns over Meteora’s involvement in the LIBRA launch and its connections to other meme coins, including TRUMP and MELANIA. He also confirmed his association with Hayden Davis, CEO of Kelsier Ventures, the firm behind the LIBRA token launch. In a subsequent statement, Chow admitted he had referred Davis to other crypto projects, including the MELANIA token team, based on past successful collaborations.
Meteora’s Next Steps and Industry Reactions
Following Chow’s resignation, Meow announced plans to commission an independent third-party investigation into the insider trading allegations. The firm is in discussions with California-based law firm Fenwick & West to conduct the inquiry, aiming to ensure transparency and restore investor confidence.
Chow’s resignation has elicited mixed reactions within the crypto community. Some, like Kash Dhandha, a founding member of Super Team DAO and a key figure at Jupiter, defended Chow, arguing that his errors were strategic misjudgments rather than deliberate misconduct. Others, however, have called for broader regulatory oversight of meme coin launches, given the recurring pattern of market manipulation in high-profile token offerings.
As the LIBRA scandal continues to unfold, the repercussions extend beyond Meteora. President Milei now faces potential impeachment proceedings and escalating legal challenges, while the Argentine stock market has already suffered declines amid the ongoing controversy.
