LIBRA Linked With Milei Sued for Electronic Fraud Worth 107 Million USD

The New York Supreme Court is set to review the lawsuit against the creators of token Libra (LIBRA), accusing them of defrauding investors and siphoning off more than $100 million through an unfair liquidity scheme. What began as a promising cryptocurrency project has quickly turned into a financial nightmare for thousands of investors. Now, with allegations of manipulation, insider profits, and political influence, the case could set a significant precedent for how cryptocurrency projects handle investors' money. Could this lawsuit expose one of the largest cryptocurrency scams in recent years? The lawsuit was filed against Kelsier Ventures, KIP Protocol, and Meteora. On March 17, Burwick Law filed a class action lawsuit against Kelsier Ventures, KIP Protocol, and Meteora, accusing them of launching LIBRA in a fraudulent manner. The lawsuit also highlights how Argentine President Javier Milei promoted the token on X (formerly known as Twitter) as a way to boost private sector funding in Argentina.

The lawsuit criticizes KIP and Meteora for using a one-sided liquidity group that is "predatory" to artificially drive up the price of LIBRA. This setup is said to have allowed insiders to withdraw money with huge profits while ordinary investors had to bear losses. Within just a few hours after the launch, insiders are reported to have withdrawn about $107 million, causing the value of LIBRA to drop by 94%. Is President Milei involved? Although President Milei is mentioned in the lawsuit, he is not named as a defendant. Burwick Law argues that the companies used Milei's influence to make LIBRA appear more legitimate, misleading investors about its potential. The lawsuit also reveals that 85% of LIBRA tokens were withheld at launch, a fact that was not disclosed to investors. Investors suffer significant losses while insiders profit. Burwick is seeking financial compensation for investors, legal action against the involved companies, and measures to prevent future fraud upon the launch of the cryptocurrency token. According to blockchain analytics firm Nansen, 86% of the 15,430 largest LIBRA wallets have sold at a loss, totaling 251 million dollars. Meanwhile, only 2,101 wallets have made a profit, earning 180 million dollars. Kelsier Ventures and the company's CEO, Hayden Davis, are among the biggest beneficiaries, reportedly earning around 100 million dollars. Davis, who may now face an Interpol red notice, has denied owning or directly selling the tokens. Milei has denied actively promoting LIBRA, claiming that he only "spreads" information about it. Despite legal challenges, the opposition in Argentina has failed in its efforts to impeach him over the scandal. When the incident occurred, the cryptocurrency world was watching closely – because if the creators of LIBRA can escape punishment, then who will be next?