Burwick Law, a US law firm that filed a class action lawsuit against Pump.fun, recently announced that it has filed a lawsuit against a number of cryptocurrency companies including Meteora and Kelsier and their team members. It is reported that the lawsuit accused Meteora of fraud when launching the $M3M3 token.

Meteora and LIBRA issuers have a close relationship

Burwick Law, which previously filed a class action lawsuit against Pump.fun, said in February after Argentinian President Javier Milei promoted the meme coin $LIBRA: “If you have lost funds on $LIBRA, please contact Burwick Law Firm to learn about your legal rights. Our firm represents thousands of clients seeking to recover cryptocurrency losses.”

(Review of the Argentine President's issuance of LIBRA: A scam? The team behind it, KIP, is exposed, and a well-known law firm is willing to provide legal assistance)

Today, Burwick Law announced that it will file a lawsuit on behalf of investors against Ben Chow, Meteora, Hayden Davis, Gideon Davis, CT Davis, and Kelsier, alleging fraud, securities fraud, and other claims in the launch of the $M3M3 token on Meteora.

In the LIBRA case, Meteora has a close relationship with the LIBRA issuer. According to the prosecution, Ben Chow is the co-founder of Meteora and Jupiter. Hayden Davis, head of venture capital firm Kelsier Ventures, said the firm acted only as an advisor in this matter.

(The man behind the Argentine president's meme coin LIBRA: the latest relationship map, KIP and Kelsier's response)

Internal wallet controls 95% of chips

As a summary, the lawsuit alleges that Solana decentralized exchange Meteora, its former CEO Chow, and venture capital firm Kelsier (run by the Davis father and son) allegedly worked together to manipulate the meme coin $M3M3, defrauding up to $69 million. The defendant used the name "M3M3 Platform" and claimed that staking could share the transaction fees and reduce volatility, thereby attracting a large number of investors.

However, in fact, only 20 minutes after $M3M3 went online, 150 internal wallets controlled 95% of the tokens and blocked retail investors from buying by manipulating the liquidity pool. After artificially raising the market value to $5 million, insiders began to sell, and the price of the currency plummeted on December 6; after several unsuccessful rescue attempts, the project was declared essentially terminated in February of this year, and the price of the currency was reduced to $0.003.

The article Meteora and LIBRA issuers were accused by a US law firm of fraud in issuing $M3M3 tokens first appeared in Chain News ABMedia.