A New York-based law firm is ramping up efforts to gather investor testimony in preparation for a potential lawsuit involving the collapse of the Solana-based meme coin Libra (LIBRA).
The Treanor Law Firm, which has been reviewing the circumstances around the token’s February launch, is now actively seeking individuals who lost funds in what it suspects may be a case of coordinated fraud, market manipulation, and racketeering. The firm’s next step hinges on gathering firsthand accounts from affected investors.
The Libra token drew attention earlier this year due to its ties to Argentine President Javier Milei. According to a statement issued by Milei’s official social media account, Hayden Davis, CEO of Kelsier Ventures, pitched the token to him during a January meeting. Davis also cited Tech Forum Argentina’s Mauricio Novelli and Manuel Godoy as contributors to the project, though their roles remain vague.
The investigation raises questions about how deeply political and private interests were involved in the project’s promotion and eventual collapse.
$LIBRA Token Promotion and Subsequent Collapse
Launched on 14 February under the banner of the “Viva La Libertad Project,” the LIBRA token was marketed as a Solana-based initiative to support Argentina’s economic growth by funding small businesses. Its public endorsement by President Javier Milei helped push the token’s market capitalization to $1.17 billion within days, amplifying investor interest.
But the project unraveled just as quickly. Within 24 hours of hitting its peak, LIBRA’s value collapsed by 97%. The sharp downturn came after President Milei deleted a post promoting the token from his official X account and publicly distanced himself from the project, stating he had no prior knowledge of its origins.
“We’ve been looking at this from the beginning,” said Tim Treanor, Managing Principal at the Treanor Law Firm.
He noted that investigators are examining three primary angles; foremost among them, whether misleading representations were made that encouraged investors to purchase the token under false pretenses.
The president had previously praised the project as a private initiative intended to boost Argentina’s small business sector—an assertion he later retracted. Shortly after the crash, Milei faced fraud allegations in Argentina, which he denied, insisting he had acted in good faith.
In addition to reviewing how LIBRA was marketed, Treanor said his firm is investigating the sale and distribution of the token itself.
“Were coins sniped? Were the pretenses under which people purchased and traded in the coin truthful and consistent with people’s expectations? Or was there manipulation?”
Law Firm Brings in Expertise as $LIBRA Losses Top $280M
Treanor Law Firm’s early findings indicate that over 75,000 wallets may have suffered losses totaling over $280 million. According to Managing Principal Tim Treanor, the firm is now focused on identifying the motivations and expectations of these investors—insight that will determine whether the legal approach should center on fraud, market manipulation, or both.
“It’s important for us to try to connect with more people who lost money and to find out what their motivations were,” Treanor said.
Treanor brings nearly three decades of legal experience to the case, including 16 years at global law firm Sidley Austin LLP—whose alumni include former President Barack Obama and current Vice President JD Vance. Notably, Treanor previously represented CONCACAF in efforts to recover $201 million lost to financial misconduct.
Since launching his own practice, Treanor has focused on bridging the gap between financial crime law and the evolving crypto space. He believes that while crypto has the potential for positive impact, persistent bad actors have undermined the sector’s credibility.
As the investigation moves forward, Treanor emphasized that reaching affected investors is critical to building a comprehensive case.
“A lot of the facts are out there,” he added.
“Whether it’s credible or not, maybe a court will decide that someday.”
Quick Facts
- The Treanor Law Firm is investigating the collapse of LIBRA, a meme coin linked to Argentine President Javier Milei, for potential fraud and market manipulation.
- Over 75,000 wallets reportedly lost funds, with estimated losses surpassing $280 million.
- The firm seeks to contact affected investors to assess motivations and build a legal case.
- The token surged to a $1.17B market cap before crashing 97%, prompting Milei to distance himself from the project publicly.
