According to the lawsuit filed by the Court of the Southern District of New York, Meteora and its general director Benjamin Chow, as well as Kelsier Labs and its leaders Hayden, Gideon and Charles Thomas Davis, mislead the public about the launch of M3M3 token M3M3 And they manipulated him in the course for profit.
The plaintiffs claim that insiders secretly distributed up to 95% of the M3M3 proposal, using more than 150 cryptocurrency addresses. Then they limited access to retail customers during the early trading window, at the same time overestimating the token course through internal bidding. After a sharp growth, the M3M3, insiders sold their crypto assets. This provoked a sharp collapse of token within a few days after the launch, which took place on December 4. A sharp decline began on December 6, and as a result of the “pumping and discharge” scheme, the total loss of investors exceeded $ 69 million, the plaintiffs’ complaint was indicated.
They noted that the crypto project was positioned as a solution against the common diagrams of pamp and dumpa, from which investors often suffer from memecoirs. CHOU promoted M3M3 tokens as safe crypto acts with long -term value. Investors promised that the launch would be transparent, and the remuneration for the staining will come from the commissions for transactions from Meteora. The plaintiffs claim that these statements intentionally misled them. The defendants made efforts to return the confidence of investors after the collapse of token, artificially overstating its value, but these attempts were unsuccessful.
In March, another collective lawsuit was filed against Meteora and Kelsier, related to the collapse of the scandalous Libra token, which was advertised by Argentina President Javier Miley. The Burwick Law Law Company brought similar accusations to these organizations: liquidity manipulation and deception of investors.
Source: Bits
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