Burwick Law Files Class Action Lawsuit Against Kelsier Ventures, KIP Protocol, and Meteora

Burwick Law, a New York-based law firm that specializes in digital asset cases, has officially filed a class action lawsuit against Kelsier Ventures, KIP Protocol, and Meteora.

Burwick Law, a New York-based law firm focused on digital asset cases, has filed a class action lawsuit in the Supreme Court of New York on behalf of those who were defrauded by Kelsier Ventures, KIP Protocol, and Meteora in the initial coin offering (ICO) of LIBRA.

The complaint, seen by Law360 on Thursday, accuses the companies of engaging in fraudulent activity to deceive buyers and investors. The lawsuit arises from the recent debacle of the LIBRA token, which was touted as a pivotal initiative to propel Argentina’s economic growth.

The launch of the token was widely promoted by Argentine president Javier Milei, who shared details of the project with his millions of followers on social media platforms, inadvertently adding a sense of legitimacy to the project. Sadly, the project began crumbling just hours after its launch.

The lawsuit dives into the structure of LIBRA, which it claims was purposely ‘simplified’ to allegedly facilitate the artificial inflation of the token’s price, creating a false impression of stability and value.

Typically, decentralized finance structures rely on a two-way liquidity model, generally paired with stable assets like USDT. However, Libra was built on a single-sided liquidity model. In this setup, liquidity providers fund a pool with a single asset, and the protocol manages the conversion or balancing of liquidity as needed.

While this model decreases the complexity of managing paired assets, it does create leeway for more centralized control of the liquidity, allowing ill-intended developers to manipulate the price of the asset.

The Libra token, launched on February 14, 2025, quickly gained significant traction, reaching a market capitalization of over $4.4 billion in a matter of hours. From its peak, the token went crashing down, erasing over $280 million at the cost of over 75,000 investors.

Earlier this week, Gregorio Dalbón, an Argentine lawyer representing several victims of the Libra token scam, formally requested that Interpol issue a Red Notice for Hayden Davis, Kelsier Ventures CEO.

In addition, Javier Milei is also suffering extreme pressure, and could potentially be the target of investigations regarding the failed token launch.