US Judge Dismisses Libra Crypto Class Action Against Kelsier

Libra Matter Settled: Class Action Dismissed

The saga of the Libra project, a token promoted by Argentine president Javier Milei using his social media channels, seems to be coming to a close, at least in the U.S.

Federal Judge Jennifer L. Rochon dismissed a class action lawsuit against Libra organizer Kelsier Ventures and Meteora, a decentralized finance platform, and also denied the plaintiffs’ motion to file a second complaint.

In her opinion, Rochon stressed that plaintiffs cannot sue Meteora, a decentralized finance protocol, because they failed to prove it acted as an unincorporated association or a partnership, siding with Dynamic Labs, which argued that Meteora was just software and could not be sued.

The court dismissed the Racketeer Influenced and Corrupt Organizations (RICO) Act violations allegedly committed by Kelsier Ventures. Rochon explained that plaintiffs failed to establish a valid pattern of racketeering activity, highlighting that a six-month timeline for the scheme involving Libra was insufficient to prove closed-ended or open-ended continuity, requisites for establishing a RICO case.

Charges against Meteora developer Benjamin Chow were also dismissed. Rochon stressed that Chow’s relation to the project, providing technical assistance before its issuance, or Meteora’s profit from transaction fees, failed to prove fraudulent intent.

Conspiracy to defraud and unjust enrichment claims were also dismissed.

With this decision, unless other parties come forward, the Libra matter is settled in the U.S., while in Argentina, two deputies tried to become plaintiffs in the Libra case, only to have their request rejected by a Buenos Aires Federal Court.

Estimates indicate that over 44K investors were affected by Libra, when insiders dumped the price after an early sniping of considerable token volumes. While the token had a stealth launch, President Javier Milei promoted it on X, stressing that the project would help fund small Argentine businesses and startups, sharing the solana contract address associated with the token.

Later, Milei rejected any liability for these losses, comparing meme coin investments to a casino trip. “They knew very well the risk they were taking. If you go to the casino and lose money, it’s your problem,” he declared, referring to traders who were involved in the launch of Libra.