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Creators of the LIBRA token must face a US court after investors filed a complaint against them for misleading traders of the meme coin.

Well-known crypto law firm Burwick Law announced that it has filed a lawsuit against Kelsier Ventures, KIP Protocol, and Meteora for their involvement in the LIBRA token, seeking compensation for damages and disgorgement of profits from the defendants.

The Class Action Complaint

Reports said that the Supreme Court of New York is set to hear the case of the LIBRA token scandal after the meme coin’s investors ran after the entities associated with the token for misleading its traders and allegedly siphoning more than $100 million from one-sided liquidity pools.

Tonight, our firm filed a class action complaint in the Supreme Court of New York on behalf of our client. We allege that Kelsier, KIP, Meteora, and related parties orchestrated an unfair token launch ($LIBRA), allegedly misleading purchasers and harming retail investors. pic.twitter.com/H7dD2LaARK

— Burwick Law (@BurwickLaw) March 18, 2025

According to Burwick Law, it filed the lawsuit on behalf of its clients who were misguided by Kelsier Ventures, KIP Protocol, and Meteora on Libra (LIBRA) token, saying that the creators of the meme coin did it in a “deceptive, manipulative and fundamentally unfair” manner.

The law firm mentioned in the complaint that Libra leveraged the high-profile endorsement of Argentine President Javier Milei to project an impression of legitimacy and that the token has significant investment value.

One-Sided Liquidity Pool

Burwick Law criticized KIP and Meteora, two key crypto entities behind LIBRA for using a “predatory” one-sided liquidity pool to artificially inflate the memecoin’s price, allowing insiders to profit while “everyday buyers bore the losses.”

“We further allege that approximately 85% of supply was withheld at launch, enabling insiders to profit while everyday buyers bore the losses,” the law firm said.

According to the lawsuit, it allowed the LIBRA creators to “discreetly and systematically extract stable assets” such as USDC and SOL, from investors once the trading began. “Within hours, the Defendants’ insiders rapidly siphoned approximately $107 million from liquidity pools, causing an immediate 94% collapse in the token’s market valuation,” the law firm stated.

If you lost money on $LIBRA, contact Burwick Law to learn about your legal rights.

Our firm represents thousands of clients that want to get their money back on crypto losses.

This is attorney advertising. Your results may vary.

— Burwick Law (@BurwickLaw) February 15, 2025

Deceptive Tactic

Burwick Law emphasized that the defendants utilized a deceptive tactic by not informing potential purchasers of “the true liquidity structures, insider control of token supply, and deliberate mechanisms that allowed insiders to monetize token holdings secretly.”

“Our filing claims these tactics, combined with omissions about the true liquidity structures, deprived investors of material information. As stated in the complaint, this allegedly caused a rapid collapse in the $LIBRA Token’s value after insiders secretly withdrew millions in stable assets,” the law firm said.

The law office believes that this case is essential to shed light on practices that “could harm retail purchasers” that need to be addressed in court.

Featured image from Reuters, chart from TradingView

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Dogecoin’s open interest has been on a massive freefall for a while now as the memecoin continues to struggle to gain investor interest. As it stands, data shows that Dogecoin’s open interest has sharply declined since the beginning of March, plunging to levels not seen since November 2024. The rapid drawdown, tracked using data from CoinGlass, reflects a significant reduction in leveraged positions and trader appetite for the king of memecoins.

Three-Month Slide: Dogecoin Open Interest Drops Sharply

Open interest is crucial in measuring the interest in an asset, which in turn helps predict price movements. In the case of Dogecoin, its open interest reflects a trend of low interest. After peaking on January 18, Dogecoin’s open interest has been on a relentless freefall, with price action mirroring this downward trend. Since mid-January, Dogecoin’s open interest has been steadily evaporating, dropping from multi-month highs to a level now comparable to just before last year’s Q4 price rally.

According to CoinGlass data, the reduction has not been abrupt but instead drawn out over the course of the past two months, highlighted by a sustained exit by traders and a cooling of bullish sentiment in the derivatives market. This is sentiment relayed from a continued fall in the Dogecoin price alongside the rest of the crypto market. At the time of writing, the Dogecoin open interest is sitting at $1.6 billion, 70.5% below its January 18 high peak of $5.42 billion.

Potential Implications For DOGE’s Future Price Movement

The persistent decline in Dogecoin’s open interest carries a number of implications for its future price direction, particularly in the context of momentum and liquidity in the derivatives market.

Open interest is often used to assess the strength of a trend (whether upward or downward) and sharp reductions typically suggest that traders are pulling out of positions due to stop-loss triggers, liquidations, or they no longer see near-term upside in the asset. 

In theory, a decrease in Dogecoin’s open interest points to a corresponding reduction in liquidity, which can also damage any price uptrend. An increase in open interest, on the other hand, is definitive of an increase in liquidity.

Now that the open interest has returned to its November 2024 levels, it means liquidity and sentiment surrounding the meme coin have lost about two months of work, and how quickly derivatives traders can return to bullish momentum will also be factored into any potential uptrend from here.

At the time of writing, Dogecoin is trading at $0.1684, up by 0.52% in the past 24 hours. However, the broader trend remains negative, with the meme coin down by 34% over the past 30 days. This extended drawdown has also had consequences for Dogecoin’s standing in the wider market, and it has now been overtaken by Cardano in terms of market capitalization.

Featured image from DALL-E, chart from TradingView

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The crypto market concluded another week, primarily witnessing major developments surrounding the U.S. FOMC, XRP lawsuit, and Pi Network. While the Ripple community rejoiced in light of the U.S. SEC lawsuit end, the Fed Reserve kept interest rates unchanged. Simultaneously, Pi Network fluxed around the $1 mark this week, triggering a wave of speculation among investors.

Other developments like a SUI ETF filing followed, stirring market optimism globally. Mentioned below are some of the top market updates reported by CoinGape over the past week.

US FOMC Sparks Crypto Market Speculations With Unchanged Interest Rates

The crypto market saw the latest US FOMC in play, with the Federal Reserve deciding to keep interest rates unchanged at 4.25 to 4.5% this week. Nevertheless, speculations of a dovish stance as the year longs persist across the market.

Fed Chair Jerome Powell stated that the inflation outlook is transitory with the Donald Trump-induced tariff in North America. Notably, the Fed appears to be gauging the impact of recent macro dynamics before making a rate cut decision.

BitMex CEO Arthur Hayes further took the stage amid the FOMC decision, stating he believes a rate cut is looming for April 1. In turn, the CEO also anticipated a BTC rally to follow, given that the feat happens. Bitcoin closed the week at the $84K price level, whereas major altcoins mainly prevented downturns.

XRP Lawsuit End: Affirms Ripple CEO

Simultaneously, Ripple’s CEO Brad Garlinghouse proclaimed that the U.S. SEC has agreed to drop the XRP lawsuit this week. While this news offered the Ripple community immense relief, a butterfly effect occurred in the crypto market. The SEC’s stance on cryptocurrencies saw a loosened grip under Trump’s presidency.

Meanwhile, CLO Stuart Alderoty revealed the next steps following the U.S. SEC’s declaration of an appeal drop in the lawsuit. In the interim, XRP price closed this week considerably above the $2 level, although the weekly chart showed a dip of 2%.

Pi Network: What’s The Buzz?

Pi Network stole the broader market’s attention, showcasing a highly fluxing action over the past week. CoinGape reported that this volatility came attributed to nearly 129 million Pi Coins ready for an unlock, worth about $175 million, set to be added to the supply this month.

On the other hand, the crypto saw rising adoption in the Asian landscape this week. Vietnam-based Pi enthusiast Cryptoleakvn recently shared an update on X, highlighting a surge in Pi-accepting regions across the country.

However, the Pi token faced investor selloff concerns amid its turbulent price action this week. The lack of major announcements by the crypto team has added to market concerns about future movements.

In conclusion, mentioned above were some of the top crypto market updates reported by CoinGape over the past week. It’s also worth mentioning that Canary Capital filed for SUI ETF approval with the U.S. SEC this week.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.