LIBRA Token Lawsuit: $107 Million Scandal Hits Crypto Insiders

Burwick Law, representing affected buyers, has named Kelsier Ventures, KIP Protocol, and Meteora in the case, alleging that the companies used unfair tactics to boost the token’s value while quietly securing profits for themselves.

The complaint states that LIBRA’s creators set up a liquidity system that benefited insiders at the expense of ordinary buyers. According to the lawsuit, the majority of tokens were withheld at launch, and investors were not informed about the setup that inflated the token’s price.

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As a result, insiders allegedly withdrew around $107 million from the liquidity pools, which triggered a sudden 94% drop in value and left many investors with losses.

Burwick Law also argues that LIBRA’s promotion misled investors by giving the impression that it was part of an economic initiative. The token gained attention after Argentine President Javier Milei endorsed it on social media, though he is not named as a defendant.

The lawsuit claims that his involvement added credibility to the project and encouraged more people to invest under false impressions about its financial potential.

Burwick Law is seeking financial compensation for affected investors, as well as penalties against the defendants. The lawsuit also calls for restrictions on similar token launches to prevent further harm.

Argentine federal prosecutor Eduardo Taiano recently sought to freeze $110 million in assets tied to the LIBRA token scandal. Why? Read the full story.