US Lawsuit Blames Meteora Founder for MELANIA and LIBRA Token Collapse
A US class action lawsuit accuses Meteora founder Benjamin Chow of orchestrating the MELANIA and LIBRA meme coin frauds.Summary
A newly filed US class action lawsuit, *Hurlock v. Kelsier Ventures*, accuses Meteora founder Benjamin Chow of engineering the collapse of the MELANIA and LIBRA meme tokens, which allegedly used First Lady Melania Trump and Argentine President Javier Milei as promotional "props" to create a "liquidity trap."
The plaintiffs claim that Meteora and Kelsier Ventures "borrowed credibility" from these public figures to legitimize the tokens, which subsequently plunged over 90% after initial surges. While the filing explicitly states the public figures were not culpable, the LIBRA scandal has widened into a criminal probe in Argentina. Chow has previously denied wrongdoing, stating that neither he nor Meteora received insider information or tokens regarding the launches.
The case proceeds amid regulatory uncertainty, as the SEC recently classified meme coins as "collectibles" rather than securities, potentially shifting fraud cases to agencies like the CFTC. Analysts note that despite a slowdown in launches, the system heavily rewards deployers, reflecting a casino-like environment where most traders lose money.
(Source：BeInCrypto)