The motions argued that Burwick Law:
- Couldn’t prove Meteora was actually a suable entity
- Couldn’t prove that Chow was fraudulent in his activities
- Couldn’t establish personal New York jurisdiction over the Kelsier defendants
- Couldn’t establish a consistent pattern of racketeering in the six-month timeline of token launches
It’s worth noting that Rochon’s dismissal is mostly on the basis that Burwick Law’s allegations didn’t meet specific legal requirements.
As crypto law firm founder Ariel Giver noted, it shouldn’t be interpreted that “memecoins are legal,” and instead that the plaintiffs “sued the wrong thing, under the wrong statute, with the wrong facts.”
LIBRA token caused over $250M in investor losses
The defendants were accused of a coordinated insider trading scheme that involved the launch of the M3M3 token in December 2024 and LIBRA, the token publicly launched by Argentinian President Javier Milei, in February 2025.
Plaintiffs lost tens of thousands of dollars, while Nansen Research claimed 86% of LIBRA investors lost over $250 million.
During the lawsuit, unsuccessful attempts were made to prevent LIBRA-linked funds from being anonymised.
The judge claimed that Hayden Davis and other defendants had committed to documenting all of their transactions in the name of traceability, and that Burwick Law hadn’t proved that there was “irreparable harm” to plaintiffs.
Minutes before the hearing on this motion, an odd website called Libra Trust went live. It was created five days after a prior freezing order was lifted, and it once redirected users to a “pure nudism” blog.
