The New York Supreme Court is set to review the Libra token case following a class-action lawsuit against its creators. The suit alleges investors were misled, losing $107 million from liquidity pools.
Allegations Against Libra
Burwick Law filed a lawsuit on March 17 against Kelsier Ventures, KIP Protocol, and Meteora, claiming they launched the Libra (LIBRA) token deceptively. Argentine President Javier Milei promoted LIBRA as a means to enhance private sector funding.
Financial Losses of Investors
Burwick criticized KIP and Meteora for using 'predatory' one-sided liquidity pools to inflate token prices, allowing insiders to pull out $107 million, leading to a 94% drop in LIBRA's value. Research by Nansen revealed over 86% of holders sold at a loss, losing a total of $251 million.
Response From Companies and Leaders
Kelsier Ventures and CEO Hayden Davis profited around $100 million. Davis claimed no direct ownership or sale of tokens. Meanwhile, President Milei insists he only 'spread the word' about LIBRA, countering lawsuit claims.
The New York Supreme Court's review may set an important precedent for investor protection and transparency in crypto projects. Burwick Law seeks damage compensation and prevention of future token offering fraud.
