Investors sue Meteora and VC firm, alleging fraud
A class-action lawsuit has been filed against decentralized cryptocurrency exchange Meteora, alleging manipulation of the M3M3 token's launch and market price. The amended complaint, submitted on April 21 in the US District Court for the Southern District of New York, claims that Kelsier Labs, Meteora, and four executives misrepresented information during the M3M3 launch in December 2024. Investors report losses of at least $69 million from December 2024 to February 2025, asserting that misleading representations about the token's backing led to artificially inflated prices. The lawsuit highlights that the defendants marketed the M3M3 token as legitimate and transparent, while it was allegedly a fraud. The SEC has indicated intentions to pursue cases against fraudulent token projects despite scaling back enforcement actions. Meteora has been associated with other controversial tokens, including those linked to public figures. A similar lawsuit regarding the LIBRA token has also been filed against Kelsier Ventures and Meteora.
