Libra Token Lawsuit Claims Fraud and Manipulation in Solana-Based Launch Backed by Argentine President
A class-action lawsuit has been initiated against the creators of the Libra token, claiming they engaged in fraud and market manipulation to gain insider profits. Initially supported by Argentine President Javier Milei, the Solana-based token was purportedly launched to bolster Argentina’s economy by aiding small businesses. However, it lost 97% of its value following Milei’s withdrawal of support. The lawsuit accuses Kelsier Ventures and others of fraudulently inflating the token’s value by controlling the supply and withdrawing profits. Over 75,000 investors suffered losses totaling $280 million. Legal actions have been taken, with potential asset freezes linked to the case. The Treanor Law Firm is calling for affected investors to join the lawsuit. Potential racketeering similar to past incidents is under investigation, aiming to prevent future crypto-related crimes.
Bearish
The lawsuit against the creators of the Libra token, endorsed at launch by Argentine President Javier Milei, is poised to negatively impact its market value. Claims of fraud and market manipulation have already resulted in significant devaluation as the price plummeted following Milei’s withdrawal of support. Such allegations typically lead to increased investor skepticism, regulatory scrutiny, and decrease market confidence. Historically, similar legal issues in the crypto space have caused prolonged negative sentiment, affecting both short-term and long-term market prospects, contributing to a bearish outlook for the Libra token specifically.