News View Non-AMP

Milei-Linked LIBRA Token Sued for $107M Crypto Fraud – Creators Exposed!

Published by
Nidhi Kolhapur

The New York Supreme Court is set to review a lawsuit against the creators of the Libra (LIBRA) token, accusing them of misleading investors and siphoning over $100 million through an unfair liquidity scheme. What started as a promising crypto project 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 major precedent for how crypto projects handle investor funds. Could this lawsuit expose one of the biggest crypto scams in recent years?

Here’s what we know so far.

Lawsuit 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, claiming they launched LIBRA in a deceptive way. The lawsuit also highlights how Argentine President Javier Milei promoted the token on X (formerly Twitter) as a way to boost private-sector funding in Argentina.

The lawsuit criticizes KIP and Meteora for using a “predatory” one-sided liquidity pool to drive up LIBRA’s price artificially. This setup reportedly allowed insiders to cash out with massive profits while regular investors suffered losses. Within hours of its launch, insiders allegedly withdrew around $107 million, causing LIBRA’s value to drop by 94%.

Was President Milei Involved?

Although President Milei was mentioned in the lawsuit, he was not named as a defendant. Burwick Law argues that the companies used Milei’s influence to make LIBRA seem more legitimate, misleading investors about its potential. The lawsuit also reveals that 85% of LIBRA tokens were held back at launch, a fact that was not disclosed to investors.

Massive Investor Losses While Insiders Profit

Burwick is seeking financial compensation for investors, legal action against the companies involved, and measures to prevent future fraud in crypto token launches. According to blockchain analytics firm Nansen, 86% of the largest 15,430 LIBRA wallets sold at a loss, totaling $251 million. Meanwhile, only 2,101 wallets made a profit, earning $180 million.

Kelsier Ventures and its CEO, Hayden Davis, were among the biggest beneficiaries, reportedly making around $100 million. Davis, who may now face an Interpol red notice, denied directly owning or selling the tokens.

Milei has denied actively promoting LIBRA, claiming he only “spread the word” about it. Despite legal challenges, Argentina’s opposition has been unsuccessful in its attempts to impeach him over the scandal.

As the case unfolds, the crypto world is watching closely—because if LIBRA’s creators can get away with this, who’s next?

Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

Recent Posts

XRP ETF Approval and Ripple IPO Happening in 2025?

XRP is making headlines again, and this time it’s not just about price action. Crypto…

July 20, 2025

Shiba vs Dogecoin vs Pepeto price prediction: Which Coin Will Lead the Next Bull Run?

Two cryptocurrencies, Dogecoin and Pepeto, are making headlines in the crypto world. Dogecoin (DOGE) has…

July 19, 2025

4 Coins to Turn $4,000 Into $800,000: Ripple (XRP) Did It Before, Here’s What Could Do It Next

XRP catapulted to $3.84 ATH from its low price—an increase that turned a modest $4,000…

July 19, 2025

Financial Pro From Wall Street Sees XYZVerse Beating ONDO and PI Network With 15,000% Upside

A veteran Wall Street analyst believes that XYZVerse could surpass both ONDO and PI Network…

July 19, 2025

CoinDCX Hack: $44.2M Stolen in Major Breach, User Funds Remain Safe

CoinDCX, one of India’s largest crypto exchanges, has reportedly lost around $44.2 million in a…

July 19, 2025

Will XRP Price Hit $10 in 2025?

XRP is back in the spotlight as excitement grows around its future. With talks of…

July 19, 2025