"In April, crypto investors brought a federal class action lawsuit against Benjamin Chow, cofounder of crypto exchange Meteora, and Hayden Davis, cofounder of crypto venture capital firm Kelsier Labs, among other defendants, accusing them of a multimillion-dollar fraud involving a single memecoin, $M3M3. Later, the plaintiffs filed an amended complaint, expanding the allegations to include racketeering activity. They claimed the pair had colluded to rig the market for $LIBRA, a coin promoted by Javier Milei, president of Argentina, which collapsed in value shortly after launch."
"On Tuesday, the plaintiffs sought the court's permission to file yet another amended complaint, based on alleged information provided by an anonymous whistleblower. With Chow acting as the "commander," the pair launched, pumped, and dumped at least 15 crypto coins, the proposed second amended complaint alleges, including $MELANIA. The scheme allegedly inflicted millions of dollars in losses on unwitting investors."
Plaintiffs allege a coordinated, multimillion-dollar crypto fraud in which Benjamin Chow and Hayden Davis launched, promoted, pumped, and dumped at least 15 memecoins, causing millions in investor losses. The scheme allegedly used celebrity association and "borrowed fame" to sell legitimacy, including a coin promoted by Melania Trump ($MELANIA) and one promoted by Argentina's president Javier Milei ($LIBRA). Investors previously sued over $M3M3 and expanded allegations to include racketeering. Plaintiffs seek to file an amended complaint based on whistleblower information identifying Chow as the scheme's "commander." Plaintiffs do not allege that Trump or Milei operated the scheme.
Read at WIRED
Unable to calculate read time
Collection
[
|
...
]