{"id":52624,"date":"2025-03-18T09:03:55","date_gmt":"2025-03-18T09:03:55","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=52624"},"modified":"2025-03-18T09:03:55","modified_gmt":"2025-03-18T09:03:55","slug":"new-york-supreme-court-to-review-libra-token-scandal-amid-100m-fraud-allegations","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=52624","title":{"rendered":"New York Supreme Court To Review Libra Token Scandal Amid $100M Fraud Allegations"},"content":{"rendered":"

The Supreme Court of New York is set to review a class-action lawsuit alleging that the creators of the Libra (LIBRA) token misled investors and orchestrated a fraudulent scheme that siphoned over $100 million from manipulated liquidity pools. <\/span><\/p>\n

The case, filed on March 17 by <\/span>Burwick Law<\/span><\/a>, targets Kelsier Ventures, KIP Protocol, and Meteora, accusing them of launching the token in a \u201cdeceptive, manipulative, and fundamentally unfair\u201d manner.<\/span><\/p>\n

The Libra token gained widespread attention after being publicly endorsed on social media platform X by Argentine President Javier Milei, who positioned it as an economic initiative <\/span>aimed at boosting<\/span> private-sector investment in Argentina.<\/span><\/p>\n

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Lawsuit Alleges Insiders Rigged Libra Token Launch for Massive Profits<\/span><\/h2>\n

However, the lawsuit claims that the <\/span>real<\/span> beneficiaries of the token launch were insiders who engineered a predatory liquidity structure to maximize their profits at the expense of retail investors.<\/span><\/p>\n

According to the legal filing, KIP and Meteora\u2014two crypto infrastructure and launchpad firms behind LIBRA\u2014artificially inflated the token\u2019s price using one-sided liquidity pools.<\/span><\/p>\n

This tactic allegedly allowed insiders to cash out rapidly, leaving \u201ceveryday buyers to suffer the losses.\u201d Within hours of launch, insiders had allegedly extracted approximately $107 million, triggering a 94% crash in LIBRA\u2019s market value.<\/span><\/p>\n

While President Milei is mentioned in the lawsuit, he has not been named <\/span>as<\/span> a defendant. However, Burwick Law argues that the defendants exploited Milei\u2019s influence to create a false sense of legitimacy, misleading investors into believing that LIBRA was a government-backed initiative.<\/span><\/p>\n

The lawsuit also reveals that 85% of LIBRA\u2019s token supply was withheld at launch, with no disclosure to investors regarding the \u201cpredatory infrastructure techniques\u201d allegedly used to manipulate the market. <\/span><\/p>\n

The plaintiffs contend that key liquidity details were deliberately hidden, depriving investors of critical financial information before they committed funds.<\/span><\/p>\n

Burwick Law is seeking compensatory and punitive damages, <\/span>along with<\/span> the return of illicit profits and an injunction to prevent further fraudulent token offerings.<\/span><\/p>\n

Tonight, our firm filed a class action complaint in the Supreme Court of New York on behalf of our client. We allege that Kelsier, KIP, Meteora, and related parties orchestrated an unfair token launch ($LIBRA), allegedly misleading purchasers and harming retail investors. pic.twitter.com\/H7dD2LaARK<\/a><\/p>\n

\u2014 Burwick Law (@BurwickLaw) March 18, 2025<\/a><\/p>\n\n

According to blockchain research firm Nansen, an analysis of 15,430 major LIBRA wallets found that over 86% of investors sold at a loss, collectively amounting to $251 million in damages. In contrast, just 2,101 wallets turned a profit, amassing $180 million in gains.<\/span><\/p>\n

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Kelsier Ventures CEO Allegedly Pocketed $100M from Libra Token <\/span>Scheme<\/span><\/h2>\n

Among those who allegedly profited the most from the scheme were Kelsier Ventures and its CEO, Hayden Davis, who reportedly netted around $100 million from the token launch. <\/span><\/p>\n

Davis, now facing a potential Interpol red notice, has denied direct ownership of the tokens and insists he did not sell them.<\/span><\/p>\n

Meanwhile, President Milei has attempted to distance himself from the controversy, maintaining that he did not \u201cpromote\u201d the LIBRA token but merely \u201cspread the word\u201d about it. <\/span><\/p>\n

Despite facing fraud-related lawsuits, Milei has avoided direct legal repercussions. However, Argentina\u2019s opposition party has called for his impeachment, though their efforts have yet to gain significant traction.<\/span><\/p>\n

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\n

Key Takeaways<\/h3>\n

The New York Supreme Court will review a lawsuit accusing the Libra token\u2019s creators of misleading investors and orchestrating a $100 million fraud.<\/span> <\/p>\n

The lawsuit claims insiders manipulated liquidity pools, causing a 94% crash while profiting at the expense of retail investors.<\/span> <\/p>\n

Argentine President Javier Milei promoted the token but <\/span>denies<\/span> wrongdoing, as calls for his impeachment <\/span>face<\/span> limited success.<\/span> <\/p><\/div>\n

The post New York Supreme Court To Review Libra Token Scandal Amid $100M Fraud Allegations<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

The Supreme Court of New York is set to review a class-action lawsuit alleging that the creators of the Libra (LIBRA) token misled investors and orchestrated a fraudulent scheme that siphoned over $100 million from manipulated liquidity pools. The case, filed on March 17 by Burwick Law, targets Kelsier Ventures, KIP Protocol, and Meteora, accusing […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-52624","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/52624"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=52624"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/52624\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=52624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=52624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=52624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}