Lawsuit Accuses Meteora Founder of Orchestrating Meme Coin Fraud Scheme Involving Melania Trump and Javier Milei Promotions
Introduction: The Alleged Meme Coin Mastermind
A new class action lawsuit filing paints Meteora founder Benjamin Chow as the mastermind behind the notorious Libra and Melania meme coins, asserting that the notable public figures—First Lady Melania Trump and Argentine President Javier Milei—who promoted them aren’t to blame for the alleged “crimes” related to the “scam tokens.” The claims come courtesy of the latest filings in Hurlock v. Kelsier Ventures, a fraud and racketeering class action lawsuit with Meteora, Chow, and others listed as defendants. The complaint specifically focuses on the launch of five tokens, with the Milei-promoted LIBRA and Trump-linked MELANIA being the highest-profile of the bunch. This legal action pulls back the curtain on an alleged coordinated scheme that leveraged political celebrity to create liquidity traps for unsuspecting investors, raising critical questions about accountability in the largely unregulated meme coin space.
The Legal Framework: Understanding Hurlock v. Kelsier Ventures
The class action lawsuit represents a significant legal challenge to alleged misconduct in the cryptocurrency meme coin sector. Filed as Hurlock v. Kelsier Ventures, the case names Meteora, Benjamin Chow, and other entities as defendants in a fraud and racketeering complaint. The legal action follows a pattern seen in previous cryptocurrency litigation where plaintiffs utilize racketeering statutes to address alleged coordinated fraudulent activities across multiple projects and entities.
The complaint specifically focuses on the launch of five tokens, though it notes that the defendants allegedly launched "at least 15 tokens that followed an identical blueprint." This approach of targeting multiple token launches within a single legal action reflects growing sophistication in how cryptocurrency fraud cases are being structured and prosecuted. The inclusion of racketeering charges suggests plaintiffs are arguing these weren't isolated incidents but rather part of an organized enterprise.
The Celebrity Connection: Political Figures as "Window Dressing"
According to the legal filing, "Defendants borrowed credibility from real-world figures or themes—such as the 'official Melania Trump' coin (MELANIA), [and] the 'Argentine revival' coin (LIBRA) tied to President Javier Milei." The complaint explicitly states that "these faces and brands were used as props to legitimize what was actually a coordinated liquidity trap. Plaintiffs do not allege those public figures were culpable; they were merely the window dressing for a crime engineered by Meteora and Kelsier."
This distinction is crucial—while the promotional activities of high-profile figures brought attention to these tokens, the plaintiffs are directing legal responsibility toward the technical and operational teams behind the scenes. The First Lady promoted a Solana meme coin that used her own name in January—just two days after her husband, President Trump, released his official token. Similarly, Argentine President Milei promoted the LIBRA crypto token, which was branded as a tool to fund small Argentine businesses. In both cases, the celebrity endorsements provided immediate credibility and market attention that allegedly facilitated the subsequent scheme.
Benjamin Chow: The Alleged "Center of the Enterprise"
The plaintiffs allege that Chow was "at the center of the enterprise," with the filing claiming that Meteora's automated market maker business was completely separate from Chow's "brand, infrastructure, and code base" to run "pump-and-dump" tokens, which also operated under the Meteora name. This alleged separation between legitimate business operations and questionable token launches represents a sophisticated approach to maintaining plausible deniability while operating what plaintiffs claim was a coordinated fraud scheme.
According to the complaint, "Chow assembled a small group of trusted collaborators: Ng Ming Yeow ('Ming'), co-founder of Meteora and Jupiter; and the Davis family, acting through Kelsier Ventures (Hayden, Charles, and Gideon Davis), to execute the fraud." This network structure allegedly allowed for distributed execution while maintaining centralized control. Chow resigned from Meteora in February as details about the meme coin launches started to emerge. Chow did not respond to Decrypt's request for comment on X or Telegram.
Kelsier Ventures' Role: Execution at Chow's Direction
Hayden Davis, the CEO of Kelsier Ventures, found himself at the center of the debacle after doing a spree of interviews following the collapse of LIBRA. However, the filing now claims that Davis executed "at least 15 token launches at Chow's direction," and that the broader Kelsier firm worked "under [Chow's] instructions." This characterization positions Kelsier Ventures as operational executors rather than primary architects of the alleged scheme.
When Decrypt asked the law firm representing the plaintiffs, Burwick Law, why it believes that Chow was at the center of the operation, the firm highlighted private Telegram screenshots of Davis explaining that he was working under Chow's command. This digital evidence forms a critical component of the plaintiffs' argument about the chain of command and responsibility within the alleged operation. Kelsier Ventures did not reply to Decrypt's request for comment.
The Token Collapse Pattern: MELANIA and LIBRA Price Trajectories
The MELANIA coin quickly surged upon launch before crashing 99% in the following months as the meme coin team quietly dumped tokens. Similarly, Argentine President Milei promoted the LIBRA crypto token, which also skyrocketed in value before rapidly tanking 90% in a matter of hours—and Milei soon deleted his posts. This identical pattern across multiple tokens forms the basis of plaintiffs' allegations about a coordinated "pump-and-dump" scheme.
On-chain analytics firm Bubblemaps found a link between the wallets used to launch MELANIA and LIBRA, resulting in the aforementioned class action lawsuit. This blockchain forensic evidence provides technical substantiation for claims that these seemingly separate token launches were actually connected operations. The speed and magnitude of both tokens' collapses—99% for MELANIA and 90% for LIBRA within hours—suggest similar operational methodologies were employed across different projects.
Legal Precedent and Recent Developments: The $57.6 Million Unfreezing Order
In August, however, a judge ordered that $57.6 million in USDC associated with the Libra meme coin should be unfrozen, as the judge was "skeptical" that the plaintiffs would succeed in their case. This development represents a significant setback for plaintiffs and indicates potential challenges in proving their allegations in court. The judicial skepticism noted in this ruling suggests that establishing legal responsibility in complex cryptocurrency cases involving multiple entities and jurisdictions remains challenging.
This unfreezing order follows patterns seen in other cryptocurrency litigation where initial asset freezes are later modified as courts examine evidentiary standards and likelihood of success. The outcome highlights the balancing act courts face between protecting potentially defrauded investors and ensuring due process rights for defendants.
Comparative Analysis: Meme Coin Regulation and Historical Context
The case emerges against a backdrop of increasing regulatory scrutiny around celebrity-promoted cryptocurrencies. While previous cases have focused primarily on the promoters themselves, this lawsuit represents a shift toward targeting technical operators and infrastructure providers. The approach mirrors historical patterns in financial regulation where enforcement initially targets visible participants before expanding to include supporting ecosystems.
Compared to previous meme coin controversies involving figures like Floyd Mayweather Jr. and DJ Khaled—which resulted in SEC actions against celebrities—this case focuses instead on developers and venture firms supporting token launches. This evolution suggests regulators and plaintiffs are developing more sophisticated understanding of how cryptocurrency projects operate technically and organizationally.
Conclusion: Implications for Crypto Accountability and Investor Protection
The Hurlock v. Kelsier Ventures lawsuit represents a significant test case for assigning responsibility in complex cryptocurrency operations where promotional activities are separated from technical execution. While celebrity endorsements provided initial visibility for MELANIA and LIBRA tokens, plaintiffs argue these were merely "window dressing" for an operation allegedly engineered by Benjamin Chow and executed through Kelsier Ventures.
The recent unfreezing of $57.6 million in assets indicates potential legal hurdles ahead for plaintiffs, but regardless of outcome, this case highlights growing sophistication in how cryptocurrency fraud is being investigated and litigated. The use of on-chain analytics by Bubblemaps to connect wallet addresses demonstrates how blockchain transparency is becoming a tool for forensic investigation.
For cryptocurrency investors and industry participants, this lawsuit underscores several critical considerations: celebrity endorsements alone don't guarantee project legitimacy; complex organizational structures can obscure ultimate responsibility; blockchain analytics are increasingly used in legal proceedings; regulatory scrutiny continues expanding beyond token promoters to include developers and infrastructure providers.
As this case progresses through discovery phases with its Telegram evidence and wallet analysis already submitted, it will likely establish important precedents for how courts handle multi-layered cryptocurrency operations where promotional activities are separated from technical execution by design.