Burwick Law Files Lawsuit Against Cryptocurrency Companies Including Meteora and Kelsier
Burwick Law, a U.S. law firm that previously filed a class action against Pump.fun, recently announced that it has initiated legal action against several cryptocurrency companies and their team members, including Meteora and Kelsier. The lawsuit alleges that Meteora engaged in fraudulent activities during the launch of the $M3M3 token.
Close Relationship Between Meteora and LIBRA Issuer
Burwick Law had previously filed a class action against Pump.fun and stated in February, following Argentine President Javier Milei’s promotion of the meme coin $LIBRA, “If you have suffered financial losses on $LIBRA, please contact Burwick Law to understand your legal rights. Our firm represents thousands of clients seeking to recover cryptocurrency losses.”
(Reviewing Argentine President’s Coin LIBRA: A Scam? The team behind KIP exposed, and well-known law firms willing to provide legal assistance)
Now, Burwick Law has announced that it will represent investors in a lawsuit against Ben Chow, Meteora, Hayden Davis, Gideon Davis, CT Davis, and Kelsier, alleging fraud, securities fraud, and other claims related to the launch of the $M3M3 token on Meteora.
In the LIBRA case, there are intricate ties between Meteora and the LIBRA issuer. In terms of the defendants, Ben Chow is a co-founder of Meteora and Jupiter. Hayden Davis is the head of the venture capital firm Kelsier, which he claims was only acting in an advisory capacity in this incident.
(Investigating the behind-the-scenes players of Argentine President’s meme coin LIBRA: Latest relationship map, KIP and Kelsier’s responses)
Internal Wallets Control 95% of Tokens
As a summary, the lawsuit points out that the decentralized exchange Meteora on Solana, its former CEO Chow, and the venture capital firm Kelsier (managed by the Davis father and son) are accused of colluding to manipulate the meme coin $M3M3, with fraudulent amounts reaching as high as $69 million. The defendants, under the name “M3M3 Platform,” claimed to offer staking rewards and lower volatility, attracting a large number of investors.
However, in reality, merely 20 minutes after the $M3M3 launch, 150 internal wallets controlled 95% of the tokens and obstructed retail buying by manipulating the liquidity pool. After artificially inflating the market cap to $5 million, insiders began to sell off, and on December 6, the token price plummeted; after several failed attempts to stabilize the market, the project announced an effective termination in February of this year, with the token price dropping to $0.003.
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and their prices can be highly volatile, leading to a total loss of principal. Please assess risks cautiously.