Burwick Law’s class-action lawsuit against LIBRA meme coin promoters has been moved from state to federal jurisdiction. This suit was combined with one concerning M3M3, another alleged scam token managed by the same figures.
This effort differs from Argentina’s own investigations in two clear ways. It doesn’t target any Argentinian government officials or entrepreneurs, and it’s only interested in civil penalties.
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:
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.
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.
