Crypto: LIBRA and M3M3, U.S. Justice Dismisses Class Action

End of procedural game in Manhattan. Federal Judge Jennifer L. Rochon has definitively dismissed the class action filed against several alleged promoters of the memecoins $LIBRA and $M3M3. In an 81-page ruling issued on September 29, the magistrate rejected all claims and denied a further amendment to the complaint, deemed unnecessary.

However, this judicial victory does not constitute a validation of the launches in question. The court did not determine whether the alleged manipulations actually took place. It concluded that the plaintiffs had not properly established the legal grounds to pursue the defendants in New York.

Key Points

• All claims against Hayden Davis, his family, Kelsier Ventures, Benjamin Chow, and Meteora were dismissed.
• Six to seven months of token launches are insufficient to demonstrate the continuity required by the RICO Act.
• Meteora was not recognized as an association that could be sued.
• The decision does not resolve the reality of the manipulation accusations surrounding $LIBRA and $M3M3.

LIBRA and M3M3: Six Months Are Not Enough to Constitute a RICO Enterprise

Omar Hurlock and Anuj Mehta had initiated the action in the U.S. District Court for the Southern District of New York. The former claimed to have lost about $19,000 on $M3M3, launched in December 2024. The latter had purchased $LIBRA on the day of its launch in February 2025, following the message << Viva La Libertad >> posted by Argentine President Javier Milei.

The complaint accused the defendants of having prepared the insiders' wallets, controlled liquidity, artificially inflated prices, and then sold their positions before a collapse exceeding 90%. These accusations were not examined on the merits.

The plaintiffs notably invoked the RICO Act, a federal law designed to prosecute organizations engaged in repeated criminal activity. To use it, they had to demonstrate the existence of a structured enterprise and a sufficiently continuous scheme over time.

However, the described period spanned approximately six months, from October 2024 to March 2025. The proposal to add $MELANIA, $ENRON, and $TRUST to a new version of the complaint would have only extended this period to seven months. The judge deemed this duration insufficient to establish a closed continuity.

Open continuity also fails. The plaintiffs' own assertions described Kelsier and Meteora as primarily legitimate activities, while the alleged electronic fraud did not demonstrate a lasting threat of criminality. Without a racketeering scheme, the RICO claims and the associated conspiracy vanish.

Social media reacted to the news in a mixed manner -- Source: X Account

Meteora Is Not a "Team" That Can Be Sued

The complaint presented Meteora as an unincorporated association comprising several participants. Dynamic Labs intervened to argue that Meteora referred to software and not an autonomous organization.

The judge noted that the plaintiffs had not identified any specific members, leaders, governance rules, or mutual consent around a common goal. Simply labeling a protocol or its contributors as a << team >> is therefore insufficient to create an entity that can be sued.

The fraud claims against Benjamin Chow were also dismissed. Potential gains do not, by themselves, demonstrate fraudulent intent. His message posted after the crash, in which he acknowledged allowing Hayden Davis to act, did not further prove that he intended to deceive buyers from the launch.

Finally, the removal of the RICO aspect deprived the court of the argument that allowed it to exercise national jurisdiction over Kelsier Ventures and the Davis family. The connections presented with the State of New York were not sufficient to maintain the lawsuits.

A temporary freeze of $57.65 million in USDC had been ordered in 2025, before being lifted after the denial of a preliminary injunction. The proceedings opened in Argentina remain separate from this U.S. case. Javier Milei, whose publication had helped propel $LIBRA, was not a defendant in New York.

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