Burwick Law has filed a class action lawsuit in New York Supreme Court against Kelsier Ventures, KIP Protocol, and Meteora for unfairly launching the LIBRA token, which harmed retail investors.
The plaintiffs allege that 85% of the token supply was withheld at launch, allowing insiders to profit while ordinary buyers suffered losses.
It is also alleged that the KIP and Meteora infrastructure platforms used a “predatory” one-way liquidity pool to artificially inflate the price of LIBRA, allowing insiders to profit while ordinary buyers suffered losses.
Following the launch, Argentina’s President Javier Miley promoted LIBRA on his X account, saying the project was intended to spur private sector funding in the country.
The lawsuit alleges that within hours of the launch, insiders siphoned off about $107 million from liquidity pools, causing LIBRA’s market value to plummet by 94%.
Davis, who is currently facing a potential Interpol red notice at the request of Argentine prosecutors, said on February 17 that he does not directly own the tokens and will not sell them.
Miley has distanced himself from the token, saying he was not promoting the asset as alleged in the fraud lawsuits against him, but was merely “spreading information.” Opposition groups have called for Miley’s impeachment, but have so far been unsuccessful.