A class action lawsuit accuses Meteora co-founder Benjamin Chow of orchestrating a $57 million fraud scheme through meme coin launches exploiting celebrity endorsements from Melania Trump and Argentine President Javier Milei.
Allegations of Pump-and-Dump Fraud
The complaint, filed in New York’s Southern District, claims Chow, Hayden Davis, and Kelsier Ventures followed a six-step playbook for 15+ tokens like $MELANIA, $LIBRA, $M3M3, $ENRON, and $TRUST. Insiders allegedly controlled one-third of supply via whitelists and freeze/thaw toggles, hyped prices with paid influencers, then dumped holdings, causing 90-98% collapses. A central wallet funded deployers, seeded liquidity, and financed snipers. Whistleblower chats show Davis acting under Chow’s instructions, with no public figure involvement beyond borrowed fame.
- Fraud Model: Narrative hype, insider control, engineered spikes, profit extraction.
- Key Tokens: $MELANIA ($2B to $790M drop); $LIBRA (90% crash post-Milei post).
- Damages: $57M losses; RICO violations for wire fraud.
Market Impact: $427M Meme Gains Under Scrutiny
The scandal erased $90 million in market cap, spotlighting meme fraud risks in DeFi’s $150 billion+ TVL era. $TRUMP and $MELANIA generated $427 million, but 98% losses for retail highlight vulnerabilities. Meteora, a Solana DEX, is implicated for enabling launches without audits.
Responses: Leaked Videos and Denials
Chow resigned in February after $LIBRA fallout, expressing regret in a leaked video: “I feel so sick… I gave him Melania. I fucked up.” Davis defended sniping as protection. Jupiter’s Meow backed Chow’s character but criticized judgment. No responses from Trump or Milei.
2025 Outlook: DeFi Fraud Scrutiny Rises
The lawsuit demands $57 million restitution and audits, urging influencer disclosures and smart contract transparency. It could spur MiCA-like rules, impacting 15% meme TVL.
In summary, the Meteora fraud allegations expose meme coin risks, demanding accountability in 2025’s DeFi evolution.
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