Libra's 'Misleading Launch' Faces Class-Action Lawsuit

The class action lawsuit, filed by Burwick Law before the Supreme Court of New York, alleges that Kelsier Ventures, KIP Protocol, Meteora, and other related parties orchestrated an unfair token launch, misleading purchasers and harming Libra’s retail investors.

Burwick Law Introduces Class Action Lawsuit Against Libra Token Co-Founders

La Libertad Avanza, better known as the Libra token, whose launch was shared by Argentina’s president Javier Milei, is getting its first class action lawsuit in the U.S.

Burwick Law recently announced the introduction of such legal action before the Supreme Court of New York, alleging that the parties behind the token “orchestrated an unfair token launch, allegedly misleading purchasers and harming retail investors.”

While the lawsuit mentions President Milei’s endorsement as a key to creating an appearance of “legitimacy and significant investment value” for Libra, he is not directly accused of facilitating the alleged scheme. His sister Karina Milei, who has also been implicated by third parties, is not mentioned either. Nonetheless, other parties publicly linked to Libra, including Kelsier Ventures, KIP Protocol, and Meteora, are included as defendants in the complaint.

Burwick Law explains that the launch parties leveraged Meteora’s single-sided DeFi pools to orchestrate this deceptive launch, allowing the defendants to artificially control Libra’s price and manipulate market dynamics.

The lawsuit claims that this enabled defendants to extract stable assets, specifically SOL and USDC, from retail just hours after trading started. Burwick Law declares that “defendants’ insiders rapidly siphoned approximately $107 million from the liquidity pools, causing an immediate 94% collapse in the token’s market valuation.”

Estimations indicate that thousands were affected by the Libra debacle. Milei explained that most were American or Chinese, calling them “volatility operators” in one of the first interviews offered after the disastrous token launch.

While he has ordered a full inquiry from its government with an ongoing investigation by Argentine prosecutors that are already taking measures against the implicated, Milei has repeatedly disregarded his involvement in this event. “They knew very well the risk they were taking. If you go to the casino and lose money, it’s your problem,” he assessed at the same interview.

Read more: Libra Update: Interpol Red Notice Request Arises While Funds Remain in Motion

Read more: Javier Milei Denies Responsibility in Libra Debacle: ‘If You Go to the Casino and Lose Money, That’s Your Problem’