The Supreme Court of New York will review a lawsuit concerning the Libra token scandal, accusing its creators of fraud and siphoning over $100 million from liquidity pools.
Lawsuit Against Kelsier Ventures and Partners
Burwick Law filed a lawsuit against Kelsier Ventures, KIP Protocol, and Meteora, accusing them of misleading investors in the launch of the Libra (LIBRA) token. The main accusations involve liquidity manipulation leading to a 94% market value drop.
Javier Milei's Role in Promoting Libra
The lawsuit states that the token was promoted as an economic initiative for private investment in Argentina by former President Javier Milei, who is mentioned but not named as a defendant.
Financial Impacts and Investigation
It was found that over 85% of tokens were withheld initially, leading to significant losses for most holders. Among Libra wallet data, over 86% were unprofitable. Kelsier Ventures and its CEO, Hayden Davis, emerged as major beneficiaries of the token launch.
The outcome of this legal case could have significant implications for the creators of the Libra token and the cryptocurrency ecosystem as a whole, given the scale of the accusations and the number of affected investors.
