Burwick Law Office has filed a class action lawsuit targeting the creators and promoters of the now-defunct LIBRA memecoin. The recently filed class action lawsuit over the memecoin scandal has officially named Kelsier Ventures, KIP Protocol, and Meteora as key defendants. Filed in the Supreme Court of New York by Burwick Law Office, the suit accuses these entities of orchestrating an elaborate scheme that defrauded investors of over $100 million.
According to court documents, the creators of LIBRA allegedly launched the token through a “deceptive and manipulative” strategy, leveraging one-sided liquidity pools that allowed insiders to profit while leaving retail investors exposed. The suit further claims that the project’s infrastructure and launchpad firms, KIP Protocol and Meteora, intentionally engineered conditions to artificially inflate LIBRA’s price, only to rapidly drain liquidity soon after.
The situation was exacerbated by high-profile promotions, including endorsements by influential figures such as Argentine President Javier Milei, who reportedly championed LIBRA as part of an economic initiative. However, within hours of launch, insiders allegedly siphoned approximately $107 million from the liquidity pools, triggering a 94% crash in LIBRA’s market value and leaving everyday investors with significant losses.
Burwick Law’s filing paints a picture of calculated exploitation, with the plaintiffs seeking restitution for what they describe as a predatory and fundamentally unfair scheme designed to enrich insiders at the expense of unsuspecting buyers.
“Our filing claims these tactics, combined with omissions about the true liquidity structures, deprived investors of material information. As stated in the complaint, this allegedly caused a rapid collapse in the $LIBRA Token’s value after insiders secretly withdrew millions in stable assets,” Burwick stated
Lawsuit Alleges Milei’s Influence Used to Mislead Investors
Though not named as a defendant, Argentine President Javier Milei was referenced in the class action lawsuit for his role in amplifying the LIBRA token’s public appeal. According to Burwick Law, the defendants behind the LIBRA memecoin allegedly leveraged Milei’s influence and high-profile endorsements to create a false sense of legitimacy, convincing investors of the token’s supposed economic potential.
The lawsuit asserts that behind the scenes, the project’s organizers withheld critical information. Specifically, it claims that approximately 85% of LIBRA’s total token supply was withheld at launch—a detail not disclosed to investors. This, combined with what Burwick describes as “predatory infrastructure techniques”, allowed insiders to manipulate liquidity pools and orchestrate a price pump before siphoning funds.
The complaint emphasizes even more, that key facts about the token’s liquidity structure and distribution were deliberately omitted, leaving investors unaware of the actual risks and dynamics at play. As a result, retail buyers were blindsided when the token’s value collapsed by 94% shortly after launch.
Burwick Law is seeking compensatory and punitive damages, the disgorgement of illicit profits, and a court injunction to prevent similar fraudulent token offerings in the future.
Growing Trend of Memecoin Scandals Raises Industry Concerns
The LIBRA case is just the latest in a growing wave of memecoin-related controversies. Memecoins, often characterized by their viral marketing tactics and lack of fundamental value, have become a breeding ground for pump-and-dump schemes and rug pulls.
While some projects like Dogecoin (DOGE) and Shiba Inu (SHIB) have built sizable communities and relatively stable ecosystems, many smaller, lesser-known and recently launched memecoins have been linked to scams, leaving investors exposed to significant risks.
This latest lawsuit adds to the ongoing debate around the need for more stringent regulatory oversight and investor protections in the crypto space, particularly concerning speculative tokens with little accountability or transparency.
Quick Facts:
- Burwick Law Office has filed a class action lawsuit over the alleged $100 million LIBRA memecoin rug pull.
- The lawsuit accuses LIBRA’s developers of manipulating liquidity pools and misleading investors.
- Memecoin scams have become increasingly common, raising concerns over investor protection.
