Simply put
- Investors claim that First Lady Melania Trump and Argentine President Javier Milei are not to blame for the “fraudulent tokens” they endorsed, according to legal filings.
- The lawsuit points the finger at Benjamin Chow, the founder of Meteora, as being the central figure behind the operation, alleging that Hayden Davis and Kelsher Ventures acted under his management.
- This class action lawsuit follows the controversial launches of the Melania and Libra meme coins, both of which experienced price surges at launch before crashing dramatically.
A recent class action lawsuit has identified Benjamin Chow, the founder of Meteora, as the architect of the widely criticized Libra and Melania tokens. Public figures, including First Lady Melania Trump and President Javier Milei, insist they are not responsible for the issues tied to these “fraudulent tokens.”
The legal complaints, specifically regarding the case Harlock vs. Kelsher Ventures, name several defendants, including Meteora and Chow. The focus is on five token launches, with LIBRA and MELANIA being the most notable.
According to the lawsuit, the “Defendants borrowed authenticity from real-world characters and themes.” The complaint highlights that the “Official Melania Trump” coin linked to Melania and the “Argentina Reconstruction” coin associated with Milei were used to legitimize what turned out to be an organized liquidity trap. The plaintiffs, however, don’t blame these public figures directly; they describe them as merely decorative elements in the alleged crimes orchestrated by Meteora and Kelsher.
In January, Melania Trump promoted a Solana-based meme coin just two days after President Trump introduced the official token. While Melania Coin initially soared in value, it quickly plunged, losing 99% of its worth within months.
Similarly, Milei’s LIBRA token was initially presented as a means for financing small and medium-sized businesses in Argentina. Its value also skyrocketed, but then dropped by 90% shortly after launch, leading to controversial comments from Milei, who later removed his announcement. An on-chain analysis firm found connections between wallets that launched both MELANIA and LIBRA, contributing to the ongoing lawsuit.
The plaintiffs state that instead of targeting these high-profile endorsers, they believe Chow was the main player behind the operation. The lawsuit indicates that Chow’s automated market maker business operated distinctly from the “brand, infrastructure, and codebase” designed for his “pump-and-dump” schemes.
Chow is described as having a tight-knit group of collaborators, including co-founder Ng Ming Yeo and members of the Davis family representing Kelsher Ventures. Together, they are accused of launching multiple tokens, with at least five detailed in the complaint as following a similar pattern.
After the crash of the Libra token, Kelsher Ventures CEO Hayden Davis found himself under scrutiny. The filing alleges that he conducted “at least 15 token issuances at Chow’s direction,” emphasizing that Kelsher operated under Chow’s instructions.
Chow resigned from Meteora in February as allegations about the meme coin launch started surfacing. However, he did not respond to requests for comment.
In August, a judge ruled that $57.6 million linked to the Libra token should be unfrozen, expressing doubt about the plaintiffs’ chances of success in their lawsuit.
Kelsier Ventures did not respond to requests for comment.
