Solana: Meteora faces a rug pull allegation over M3M3 coin

The class-action lawsuit that Meteora faces for pump-and-dump schemes regarding the M3M3 meme coin launch has come as no surprise

A class-action lawsuit has been filed against decentralized exchange Meteora and its founder Benjamin Chow over pump-and-dump schemes. The lawsuit claims that Motion Attack founders Thomas Davis, Hayden, and Gideon, along with venture firm Kelsier Labs and multiple executives, are also defendants.

The complaint alleges that the new alt Solana token was being hyped by the exchange in a move that was bound to attract attention.

The suit, which was filed in the California court on Tuesday, follows the December 2024 launch of M3M3, a meme coin.

The complaint claims that the purported losses from the alleged pump-and-dump schemes by December 2024 to February 2025 surpassed the $69 million mark.

Motion Attack founders are suing Kelsier Labs and its founder Ben Chow, along with several executives, for allegedly profiting from the Solana-based token at public expense.

The complaint claims that Meteora and its founder Ben Chow, Kelsier Labs and multiple executives were among those sued by Motion Attack founders Thomas Davis, Hayden, and Gideon.

The claim stated that some participants in the M3M3 scheme reportedly snatched more than 95% of the coin supply within the first 20 minutes of the launch.

These buyers allegedly had access to pump the price and inflate it further by purchasing access to over 150 wallets.

The complaint claims that investors were assured the launch would be open and transparent, with staking rewards derived from the Meteora platform transaction costs.

However, according to the April lawsuit, these representations were made with the intent to deceive.

The application also aims to provide regulatory clarity by requesting that stake-based meme coins like M3M3 be formally classified as securities.

According to Burwick Law, this classification may impact every new political token or personality launching on the Solana market.