Meteora and LIBRA issuers accused by US law firm of fraud in issuing $M3M3 tokens

The US law firm Burwick Law, which previously filed a class-action lawsuit against Pump.fun, has recently announced a lawsuit against several cryptocurrency companies and team members, including Meteora and Kelsier. The lawsuit allegedly accuses Meteora of fraudulent activities when launching the $M3M3 token.

Close Relationship Between Meteora and LIBRA Issuers

Burwick Law previously filed a lawsuit against Pump.fun and, after Argentine President Javier Milei promoted the meme coin $LIBRA in February, stated: "If you have suffered financial losses on $LIBRA, please contact Burwick Law to understand your legal rights. Our firm represents thousands of clients hoping to recover cryptocurrency losses."

(Reviewing Argentina President's Token LIBRA: A Scam? Background Team KIP Exposed, Prominent Law Firm Willing to Provide Legal Assistance)

Now, Burwick Law has announced that it will represent investors in a lawsuit against Ben Chow, Meteora, Hayden Davis, Gideon Davis, CT Davis, and Kelsier, alleging fraud, securities fraud, and other claims when launching the $M3M3 token on Meteora.

In the LIBRA case, Meteora has a close relationship with the LIBRA token issuers. Looking at the defendants, Ben Chow is the co-founder of Meteora and Jupiter. Hayden Davis is the head of venture capital firm Kelsier Ventures, claiming the company was only a consultant in this matter.

(Investigating the Mastermind Behind Argentine President's Meme Coin LIBRA: Latest Relationship Map, KIP and Kelsier Respond)

Internal Wallets Control 95% of Tokens

In summary, the lawsuit alleges that Solana decentralized exchange Meteora, its former CEO Chow, and venture capital firm Kelsier (managed by the Davis father-son duo) conspired to manipulate the meme coin $M3M3, defrauding investors of up to $69 million. The defendants claimed the "M3M3 platform" would offer staking with fee sharing and reduce volatility, attracting many investors.

However, just 20 minutes after launch, 150 internal wallets controlled 95% of the tokens and manipulated the liquidity pool to block retail buyers. After artificially inflating the market value to $5 million, insiders began selling, causing a sharp price drop on December 6th. After multiple failed rescue attempts, the project was essentially terminated in February, with the token price falling to $0.003.