Libra Faces Legal Trouble with Class-Action Lawsuit Over ‘Misleading’ Launch
Burwick Law has filed a class-action lawsuit against the co-founders of the Libra token. Alleging they orchestrated an unfair launch that misled investors and harmed retail buyers.
The lawsuit, filed in the Supreme Court of New York, accuses Libra’s backers. Including Kelsier Ventures, KIP Protocol, and Meteora, of manipulating the token’s price and market dynamics through DeFi pools. This manipulation reportedly led to a $107 million loss, causing a 94% drop in Libra’s market value.
Although President Javier Milei endorsed the token, he is not directly named in the suit. But the legal action claims the endorsement gave the token an appearance of legitimacy. Thousands of investors, primarily from the U.S. and China, are believed to have been affected by the collapse.
Clever Robot News Desk 21th March 2025
