TLDR
- A class-action lawsuit has been filed against Meteora’s co-founder, Benjamin Chow, for leading fraudulent schemes involving the MELANIA and LIBRA memecoins.
- The plaintiffs claim Chow used the brands of Melania Trump and Javier Milei to promote the tokens and mislead investors.
- MELANIA and LIBRA coins surged in value before crashing, with allegations that the developers dumped their tokens for profit.
- Chow denies receiving any insider information or tokens from the projects but is accused of orchestrating a coordinated liquidity trap.
- The lawsuit also names Kelsier Ventures and Hayden Davis, accusing them of running marketing campaigns to promote the fraudulent tokens.
A class-action lawsuit has been filed against Meteora’s co-founder, Benjamin Chow, accusing him of leading fraudulent schemes behind the controversial MELANIA and LIBRA meme coins. The lawsuit claims that Chow and his team used these coins to execute a coordinated liquidity trap, misleading investors. The plaintiffs argue that public figures like Melania Trump and Javier Milei were exploited to promote these tokens.
MELANIA Memecoin Faces Fraud Allegations in Lawsuit
The MELANIA memecoin, marketed as the official cryptocurrency of U.S. First Lady Melania Trump, surged in value after its launch. However, the coin’s price quickly collapsed, with allegations that the developers dumped their tokens. The plaintiffs in the class action lawsuit argue that the coin was a fraudulent scheme designed to lure investors and make a profit at their expense.
According to the complaint, Chow and his team used Melania Trump’s image and brand to give the coin credibility. This tactic allegedly helped them attract attention from unsuspecting investors. Once the coin’s value skyrocketed, the developers reportedly sold off their holdings, causing the price to crash.
Chow denied any involvement in insider trading related to MELANIA. He claimed that neither he nor Meteora received any tokens from the project. However, the plaintiffs argue that the promotional campaign itself was a fraudulent operation orchestrated by Chow and his associates.
Lawsuit Claims LIBRA Token Was Fraudulent Scheme
The LIBRA memecoin was promoted as a token designed to fund small businesses in Argentina, with President Javier Milei initially endorsing the project. LIBRA’s value surged after its launch but quickly plummeted hours later. As a result, Milei faced fraud charges for his involvement in promoting the token, although an investigation cleared him of any public ethics violations.
The class action lawsuit alleges that LIBRA was part of the same fraudulent scheme that targeted investors. Plaintiffs claim that the token was not intended for public good but rather for financial gain by the developers. The token’s sudden collapse following its promotion raised suspicions about the true intentions behind the project.
The complaint further details how Chow and Kelsier Ventures, led by Hayden Davis, launched and marketed a series of similar tokens, including LIBRA. The plaintiffs argue that these tokens were designed to trap investors by creating artificial demand before quickly dumping the coins.
