First Class Action Lawsuit in the United States for $Libra, the Cryptocurrency Promoted by Milei - 18-03-25

The $Libra scandal, the cryptocurrency promoted last month by Javier Milei that turned out to be a scam, has finally reached the courts in the United States. The law firm Burwick Law filed a class action lawsuit in New York against the international masterminds behind the operation, intentionally excluding the Argentine president; his sister Karina Milei, and other Argentinians involved in the $Libra project. Although Milei is mentioned in several parts of the document, the plaintiffs, who are seeking financial compensation through civil channels in the United States, preferred to avoid litigation with the Argentine government, which could delay the process for years.

The defendants, represented by Burwick Law and approximately 200 affected investors, include the Davis family, owners of Kelsier Ventures; Julian Peh, CEO of KIP Protocol; Benjamin Chow, and Meteora. The plaintiffs consider themselves victims of a scam. “We argue that Kelsier, KIP, Meteora, and their associates orchestrated a fraudulent launch of the token ($LIBRA), deceptively misleading buyers and harming retail investors,” the lawyers explained. The lawsuit claims that the promoters marketed the cryptocurrency as “a significant economic initiative designed to stimulate economic growth in Argentina by funding small businesses, startups, and educational projects.” According to the filing, Milei played a crucial role in the promotion: “These promotional efforts leveraged the public backing of Argentina’s president, Javier Milei, creating the appearance of legitimacy and significant investment value for the token.”

On February 14, Milei promoted $Libra on his social media, a cryptocurrency that went from being worth almost nothing to over five dollars in a few hours. When the creators of the crypto coordinated their exit, the token’s price plummeted, leaving behind numerous victims and millions in losses. Milei deleted his post five hours later, arguing that he was not “aware” of the scheme, and later blamed investors for betting on a market that was “like a casino.” $Libra marked a turning point in the far-right government, which has since lost control of the public agenda and is now on the defensive. The opposition is moving forward with the formation of an investigative commission in Congress, and more lawsuits are piling up in Argentine courts against the president and his circle.

The pressure on Milei and his sister Karina is intensifying, especially after they hosted Hyden Mark Davis, an unknown 28-year-old cryptocurrency operator responsible for the launch, at the Casa Rosada weeks before the cryptocurrency’s release. The Argentine president also met with Peh, another of the people behind $Libra. Argentine justice is also focusing on Marcos Novelli and Manuel Terrones Godoy, organizers of the Tech Forum, an event held last October in Buenos Aires that served as a meeting point between the accused and Milei.