Hayden Davis and Javier Milei Caught in LIBRA Class-Action Lawsuit

According to the lawsuit, the defendants launched the LIBRA token in a "deceptive, manipulative, and fundamentally unfair" manner. The filing asserts that KIP Protocol and Meteora employed a "predatory" one-sided liquidity pool to artificially inflate the token's price. This mechanism allegedly enabled insiders to profit significantly while ordinary investors suffered losses. Within hours of its launch, insiders purportedly siphoned approximately $107 million from the liquidity pools, leading to a 94% crash in LIBRA's market value.

Burwick Law posted on X:

The lawsuit also highlights the role of Argentine President Javier Milei, who promoted the LIBRA token on social media platform X. Milei presented the token as an economic initiative aimed at stimulating private-sector funding in Argentina. While he is mentioned in the lawsuit, Milei is not named as a defendant. The plaintiffs allege that the defendants leveraged Milei's influence to create a false sense of legitimacy, misleading investors about the token's potential.

The lawsuit further claims that approximately 85% of LIBRA's tokens were withheld at launch. The defendants allegedly failed to disclose the "predatory infrastructure techniques" used, depriving investors of crucial information. These omissions, combined with misleading promotional tactics, are central to the plaintiffs' allegations.

Burwick Law is seeking compensatory and punitive damages, the disgorgement of unjustly obtained profits, and injunctive relief to prevent further fraudulent token offerings. The firm emphasizes that the tactics employed by the defendants deprived investors of material information necessary for informed decision-making.

Blockchain research firm Nansen analyzed the aftermath of the LIBRA token launch, revealing that over 86% of the 15,430 largest LIBRA wallets sold at a loss, amounting to $251 million in total losses. Conversely, only 2,101 wallets managed to profit, collectively earning $180 million. This disparity underscores the significant financial impact on the majority of investors.

Hayden Davis, CEO of Kelsier Ventures, is identified as one of the primary beneficiaries of the token launch, allegedly netting around $100 million. Davis has stated that he did not directly own the tokens and had no intention of selling them. Meanwhile, President Milei has distanced himself from the controversy, asserting that he did not "promote" the LIBRA token but merely "spread the word" about it. Despite facing fraud lawsuits and calls for impeachment from opposition parties, efforts to hold Milei accountable have thus far been unsuccessful.

This lawsuit is part of a broader trend of legal actions targeting deceptive practices in the cryptocurrency space. Burwick Law has been actively involved in representing investors seeking accountability and financial justice in digital asset markets. The firm's involvement in the LIBRA case reflects a growing emphasis on legal recourse for victims of alleged crypto frauds.

The LIBRA memecoin scandal highlights the risks associated with investing in digital assets, particularly those lacking transparency and regulatory oversight. The case underscores the necessity for investors to exercise caution and conduct thorough due diligence before participating in cryptocurrency ventures. It also serves as a reminder of the potential for misuse of influence by public figures in promoting financial products.

The class-action lawsuit filed by Burwick Law against Kelsier Ventures, KIP Protocol, and Meteora marks a significant development in the ongoing scrutiny of the cryptocurrency industry. As the case progresses, it may set important precedents for how deceptive practices in digital asset markets are addressed legally, potentially influencing future regulatory frameworks and investor protections.