Solana DEX Meteora Sued Over Alleged Pump-and-Dump Meme Coin Launch
Meteora, a Solana-based decentralized exchange (DEX), is facing a class action lawsuit in New York for allegedly orchestrating a $69 million rug pull related to its M3M3 meme coin launch. Plaintiffs claim that Meteora, founder Benjamin Chow, and Kelsier Ventures conspired to defraud investors by limiting initial sales to insiders, thereby controlling the token supply and inflating its market value. The M3M3 token was presented as a community-driven project but was allegedly manipulated by the defendants using insider wallets to gain control of 95% of the tokens shortly after launch. The lawsuit argues that the defendants failed to comply with federal securities laws, leading to inflated prices and significant losses for non-insider investors. M3M3's value has plummeted over 98% since its peak. The plaintiffs are represented by Burwick Law and Hoppin Grinsell LPP, who previously filed a lawsuit against Meteora for its involvement in another meme coin scandal.
