Federal Court Seizes LIBRA Meme Coin Case—Because Crypto Legal Drama Never Sleeps

Another day, another crypto lawsuit lands in the hands of the US judicial system. This time? The LIBRA meme coin—yes, the one that definitely isn’t affiliated with Meta’s abandoned stablecoin project—gets its day in court.

No vague settlements here: The feds are diving headfirst into allegations of fraud, market manipulation, or whatever financial shenanigans meme coins inevitably attract. Because nothing says ’decentralized utopia’ like a federal subpoena.

Meanwhile, traders shrug and keep aping into the next shiny token. Some things never change—especially when ’number go up’ is the only due diligence required.

US LIBRA Lawsuit Goes Federal

The LIBRA meme coin scandal seriously rocked Argentina’s crypto community, and local criminal investigations against key figures like President Javier Milei are ongoing.

However, a wide variety of crypto-specific entrepreneurs actually spearheaded the project. A class-action lawsuit against LIBRA backers took off in the US two months ago, and now it’s going federal:

**LIBRA COIN LITIGATION UPDATE**

Defendant Ben Chow filed a Notice of Removal on May 9, shifting our class-action case from NY state court to U.S. federal court (SDNY). This action involves the LIBRA token, with on-chain losses estimated at roughly $400 million. pic.twitter.com/gxm4IA7OTE

Argentinian local media reported additional details about the US-based LIBRA lawsuit. Essentially, US investors represented a huge chunk of LIBRA buyers so that the federal government might have grounds for criminal charges.

However, no US enforcement agencies pursued the opportunity. Instead, Burwick’s suit focuses on private backers, like Kelsier’s Hayden Davis.

As far as a civil lawsuit goes, these LIBRA backers are a much softer target than a sitting head of state. Interpol already issued a warrant for Davis’ arrest in March.

Benjamin Chow, a former executive at Meteora, is also a named target. He requested the shift from state court to federal court, and the presiding Judge, Jennifer Rochon, obliged this request.

Multiple Scam Tokens Scrutinized

In addition to transferring the LIBRA lawsuit, Judge Rochon also combined it with another case. Hayden Davis was allegedly involved in several different rug pulls and meme coin scams, continuing to launch more after the LIBRA incident.

Burwick Law is managing a separate class-action lawsuit concerning M3M3, one of these related tokens.

Davis, Chow, and several other promoters are named in this combined suit, and LIBRA promoters allegedly used very similar tactics to boost M3M3.

This is the group behind $LIBRA working directly with Meteora and KIP. LINK is dead on Kelsier Ventures site now. But pulled from archives. Pictured is the CEO Hayden Davis and his dad Tom. Group was behind M3M3 scam, plus others. Insider info likely spread through Fantom Troupe. pic.twitter.com/8g97b2rwWT

The court will save time and resources by considering both class-action suits at once, and Burwick will have the opportunity to demonstrate recurring behavior patterns.

This broader focus may give Burwick’s LIBRA lawsuit greater odds of success. It doesn’t name any Argentinian officials or entrepreneurs, preferring not to interfere with the country’s own domestic prosecution efforts.

Burwick is only concerned with proving that these private figures knowingly promoted fraudulent assets, seeking nothing but financial compensation. Compared to the recent difficulties in Argentina’s criminal investigation, this seems like a wise move.