The LIBRA token has faced a lawsuit over alleged liquidity manipulation, leading to significant trader losses and a sharp price drop.
False Promotion and Liquidity Control Alleged
The lawsuit outlines how LIBRA was promoted as a digital asset supporting Argentina's economy and even received public backing from President Javier Milei. However, legal filings suggest developers inflated the token's price using a one-sided liquidity pool, keeping 85% of the total supply away from public circulation.
Pre-Launch Access and Investor Losses
Investigations revealed that Kelsier Ventures and other connected entities accessed LIBRA tokens before the public launch. These groups earned over $100 million through early trades and selective liquidity strategies, contributing to a loss of more than $280 million in market value shortly after the token’s launch on Solana.
Political Fallout and Criminal Investigations
Beyond financial damages, the matter has escalated into criminal and political domains. Argentine attorney Gregorio Dalbón requested an Interpol Red Notice on March 12 for Hayden Davis, CEO of Kelsier Ventures, citing his financial resources as a risk for potential flight.
The lawsuit against the LIBRA token highlights significant risks and potential consequences for cryptocurrency projects, including financial, criminal, and political aspects.
