U.S. Federal Court Takes Over LIBRA Class-Action Lawsuit

The lawsuit, initially filed by Burwick Law, has also been merged with another civil case related to M3M3, a separate meme token alleged to be part of a wider scam involving the same individuals.

Why The Move To Federal Jurisdiction?

The LIBRA token scandal ravaged Argentina’s crypto scene, prompting several criminal investigations with some even touching public officials like President Javier Milei. However, the U.S. lawsuit steers clear of political entanglements and instead focuses exclusively on civil penalties for those allegedly involved in promoting fraudulent assets.

A Civil, Not Criminal, Approach

The move to federal court was prompted in part by requests from named defendants, including Benjamin Chow, a former executive at Meteora. Judge Jennifer Rochon approved the jurisdictional change, recognizing the lawsuit’s broader implications and the number of American investors affected.

While the lawsuit might have set the stage for federal criminal charges due to the scale of U.S.-based investment, no enforcement agency has opted to take that route. Instead, Burwick Law is pursuing civil action against private individuals, notably Hayden Davis of Kelsier, who is already under an Interpol arrest warrant issued earlier this year.

Who Are the Key Figures In The LIBRA & M3M3 Cases?

Hayden Davis & Benjamin Chow

Hayden Davis, considered a central figure in multiple crypto rug pulls, is accused of leading both the LIBRA and M3M3 meme coin scams. According to the plaintiffs, Davis used nearly identical promotional tactics for both projects, suggesting a pattern of fraudulent behavior.

X User ‘Beanie’ Talking About The Team Behind The LIBRA Scandal

Source: X (@beaniemaxi)

Benjamin Chow, whose name also appears in the lawsuit, has been implicated for his role in facilitating and marketing these tokens to unsuspecting investors. Both are now being held accountable under a consolidated legal action.

Why The U.S. Civil Suit Matters

No Political Targets, Just Financial Justice

One of the most striking differences between the U.S. class-action lawsuit and Argentina’s criminal investigations is the focus.

While Argentine authorities are exploring potential government links to the scandal, Burwick Law is keeping the scope strictly civil and commercial. No Argentinian officials or entrepreneurs are named in the U.S. lawsuit.

This focus may ultimately enhance the effectiveness of the case. Instead of confronting the political complexities and diplomatic sensitivities of criminal proceedings, Burwick’s legal strategy concentrates solely on proving that certain individuals deliberately misled investors for financial gain.

Defendant Benjamin Chow Filing A Notice Of Removal on May 9th, 2025

Source: X (@BurwickLaw)

Strategic Simplicity

By choosing not to involve foreign officials or complicate the case with international political elements, Burwick avoids potential delays and jurisdictional conflicts.

In addition, the legal firm is targeting civil compensation, aiming to recover losses for the investors affected by what they claim are clear-cut cases of crypto fraud.

What’s Next?

As the lawsuit moves forward in federal court, Burwick Law will aim to demonstrate that Hayden Davis, Benjamin Chow, and others involved used deceptive tactics to promote and profit from fraudulent meme coins. Evidence will likely include digital marketing campaigns, tokenomics documents, transaction data, and various communications between the accused parties.

This case could set a significant precedent in how U.S. courts treat meme coin fraud and crypto scams, especially those involving international elements. If successful, it may embolden further civil suits against crypto fraudsters and serve as a warning to promoters of high-risk, unregulated tokens.

A Pivotal Moment

The federal consolidation of the LIBRA and M3M3 class-action lawsuits also represents a pivotal moment when it comes to crypto regulation and legal accountability. By focusing on civil penalties and steering clear of international politics, Burwick Law may have found a more practical and effective route to justice for defrauded investors.

As the case develops, it will likely influence how future lawsuits are structured against fraudulent crypto projects, especially those masked as community-driven, meme-based investments.