tl;dr
Burwick Law's class-action lawsuit against promoters of the LIBRA meme coin has been moved from New York state court to U.S. federal court and combined with a related case involving M3M3, another alleged scam token linked to the same group. The lawsuit targets private backers like Hayden Davis and B...
Burwick Law’s class-action lawsuit against promoters of the LIBRA meme coin has been transferred from New York state court to U.S. federal court. The case has been consolidated with a related lawsuit involving the M3M3 scam token, which is linked to the same group behind LIBRA.
The lawsuit targets private backers including Hayden Davis and Benjamin Chow, accusing them of promoting fraudulent crypto assets that resulted in estimated losses of around $400 million. Unlike Argentina’s criminal investigations, which involve officials, this U.S. civil case focuses solely on seeking financial penalties against individuals without implicating Argentinian officials.
Consolidation of the LIBRA and M3M3 cases under federal jurisdiction allows the court to examine repeated patterns of fraudulent behavior by the defendants. This approach could enhance the chances of a successful outcome for Burwick Law’s legal action.
Hayden Davis, connected to multiple rug pulls and meme coin scams beyond LIBRA, and Benjamin Chow, a former executive at Meteora, are central figures named in the consolidated lawsuit. Judge Jennifer Rochon approved the shift to federal court after Chow requested it.
The U.S. lawsuit does not interfere with Argentina’s ongoing criminal probes involving figures like President Javier Milei, as it strictly pursues civil remedies against private promoters. This distinction makes the suit a strategic move to hold individuals accountable for promoting fraudulent digital assets without complicating international prosecutions.
By combining these class-action suits, the court aims to save resources and better demonstrate the defendants’ systematic misuse of investor funds. Burwick Law focuses on proving the defendants knowingly facilitated scams, aiming for compensation rather than criminal penalties.
This legal development reflects broader challenges in the crypto space, where regulators and plaintiffs are grappling with complex fraud schemes that transcend borders. The LIBRA and M3M3 cases underscore the need for vigilant investor protection and coordinated enforcement efforts.