US Federal Court Takes Over LIBRA Meme Coin Lawsuit

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Shocking Twist: LIBRA Meme Coin Scandal Takes a Federal Detour! 😲💰

Well, well, well! It seems that Burwick Law has decided to take their class-action lawsuit against the LIBRA meme coin promoters and give it a nice little upgrade from state to federal jurisdiction. This legal escapade has now been bundled up with another case concerning M3M3, a token that’s as shady as a tree in a thunderstorm, managed by the same cast of characters.

Now, this whole affair is a far cry from Argentina’s own investigations, which are as tangled as a cat in a yarn factory. For starters, it doesn’t have its sights set on any Argentinian officials or entrepreneurs—nope, just a good ol’ fashioned hunt for civil penalties.

US LIBRA Lawsuit Goes Federal

The LIBRA meme coin scandal has sent shockwaves through Argentina’s crypto community, leaving local criminal investigations against key figures like President Javier Milei in its wake. But fear not, for a motley crew of crypto entrepreneurs actually spearheaded this project. A class-action lawsuit against LIBRA backers kicked off in the US two months ago, and now it’s strutting its stuff in federal court:

LIBRA COIN LITIGATION UPDATE

Defendant Ben Chow filed a Notice of Removal on May 9, shifting our class-action case from NY state court to U.S. federal court (SDNY). This action involves the LIBRA token, with on-chain losses estimated at roughly $400 million.

— Burwick Law (@BurwickLaw) May 12, 2025

According to the grapevine of Argentinian local media, US investors made up a hefty portion of LIBRA buyers, which might just give the federal government a reason to throw some criminal charges into the mix. But alas, no US enforcement agencies have taken the bait. Instead, Burwick’s suit is zeroing in on private backers, like Kelsier’s Hayden Davis, who’s probably sweating bullets right about now.

When it comes to civil lawsuits, these LIBRA backers are about as soft as a marshmallow compared to a sitting head of state. Interpol even issued a warrant for Davis’ arrest back in March—talk about a hot seat!

Benjamin Chow, a former executive at Meteora, is also in the hot seat. He’s the one who requested the shift from state court to federal court, and Judge Jennifer Rochon was all too happy to oblige.

Multiple Scam Tokens Scrutinized

In a plot twist worthy of a dime-store novel, Judge Rochon didn’t just transfer the LIBRA lawsuit; she also decided to combine it with another case. Hayden Davis, the alleged mastermind, has been linked to several rug pulls and meme coin scams, continuing to launch more after the LIBRA debacle.

Burwick Law is also managing a separate class-action lawsuit concerning M3M3, one of these dubious tokens. Davis, Chow, and a few other promoters are named in this combined suit, and it seems the LIBRA promoters were using the same old tricks to pump up M3M3.

This is the group behind $LIBRA working directly with Meteora and KIP. Link is dead on Kelsier Ventures site now. But pulled from archives. Pictured is the CEO Hayden Davis and his dad Tom. Group was behind M3M3 scam, plus others. Insider info likely spread through Fantom Troupe.

— Beanie (@beaniemaxi) February 16, 2025

The court is saving time and resources by considering both class-action suits at once, and Burwick will have the chance to showcase some recurring behavior patterns.

This broader focus might just give Burwick’s LIBRA lawsuit a fighting chance. It’s smart enough not to name any Argentinian officials or entrepreneurs, preferring to stay out of the country’s own legal mess.

Burwick is solely focused on proving that these private figures knowingly promoted fraudulent assets, all while seeking nothing but financial compensation. Compared to the recent circus in Argentina’s criminal investigation, this seems like a stroke of genius.

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2025-05-21 22:24