Plaintiffs in a class action lawsuit have lodged an updated complaint against Meteora and its co-founder, Ben Chow in connection with the controversial launch of Official Melania (CRYPTO: MELANIA) and LIBRA (LIBRA) meme coins.
Plaintiffs Allege Chow Is The Mastermind
The plaintiffs asserted that Chow was at the “center of the enterprise,” while Solana (CRYPTO: SOL)-based Meteora worked under the false banner of decentralized finance.
They alleged that defendants “borrowed credibility from real-world figures and themes,” including First Lady Melania Trump and the Argentine President Javier Milei, to push at least 15 controversial tokens in the market.
“These faces and brands were used as props to legitimize what was actually a coordinated liquidity trap,” the complaint read
The lawsuit also implicates Kelsier Ventures, under the leadership of Hayden Davis, for orchestrating marketing campaigns for the token launches
The complainants also said that the public figures shouldn’t be held responsible since they were “merely the window dressing” for a crime committed by Meteora and Kelsier.
Chow didn’t immediately respond to Benzinga’s request for comment.
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The Rise And Fall
This lawsuit comes after on-chain detectives alleged a potential link between the teams behind MELANIA and LIBRA token, providing evidence of insider trading and manipulation.
Both MELANIA and LIBRA witnessed a quick rise in value followed by a rapid downfall, leading to accusations of pump-and-dump.
Price Action: At the time of writing, MELANIA was exchanging hands at $0.09548, up 1% in the last 24 hours, according to data from Benzinga Pro. The coin has lost 99% of its value since its all-time high shortly after debut.
LIBRA traded at $0.1135, down 99% from its peak. The token shot up after Milei promoted it, but within three hours, it plunged more than 80% as insiders began cashing out.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Matias Lynch on Shutterstock.com
