Meteora Co-Founder Faces Expanded Lawsuit Over Trump, Milei Token Scams: Inside the 15-Token "Pump-and-Dump" Allegations
Introduction
A New York federal court is now examining an expanded class-action lawsuit that paints a detailed picture of alleged deception within the Solana ecosystem. Filed on April 21, 2025, the revised complaint targets Benjamin Chow, the co-founder of the Meteora decentralized exchange, and Kelsier Ventures, a firm run by Hayden Davis and his family. The core allegation is a sophisticated, multi-token scheme that leveraged the names of high-profile figures like U.S. First Lady Melania Trump and Argentine President Javier Milei to lure investors. What began as an accusation concerning a single token, M3M3, has now broadened to encompass as many as 15 different cryptocurrencies. The plaintiffs claim this was not a series of isolated incidents but a coordinated, repeatable strategy designed to systematically extract value from the crypto market, raising serious questions about accountability and security in decentralized finance.
The Anatomy of the Alleged Scheme: A Two-Pronged Attack
The lawsuit outlines a highly organized operation where each participant had a defined role, creating an efficient machine for launching and collapsing token values.
The Technical Mastermind: According to the court documents, Benjamin Chow was the linchpin of the technical execution. His "unique knowledge of the code and the ability to manipulate liquidity, fee routing, and supply controls" for tokens launched on Solana allegedly allowed him to create and control the assets in a way that benefited insiders. The complainants assert that this technical prowess enabled Chow to artificially inflate token prices before orchestrating a mass sell-off, a classic pump-and-dump maneuver executed on-chain.
The Marketing Machine: The lawsuit identifies Kelsier Ventures, managed by Hayden, Charles, and Gideon Davis, as the promotional arm of the alleged scheme. Their purported role was to generate artificial hype and fabricate the appearance of organic demand. This was allegedly achieved through paid influencer campaigns and aggressive social media pushes, specifically for meme coins like MELANIA and LIBRA. By creating a buzz around these celebrity-associated tokens, they aimed to attract a flood of retail investors.
The plaintiffs describe a consistent formula applied across the 15 tokens: create artificial scarcity, deploy a marketing blitz to drive up prices, and then have insiders liquidate their holdings simultaneously. This coordinated dump would cause the token's value to plummet, leaving later investors with significant losses while the insiders pocketed the profits.
From M3M3 to MELANIA: The Expanding Scope of the Allegations
The legal battle began with a focus on a single token but has since uncovered what appears to be a much larger pattern of activity.
The Initial Accusation: The original complaint centered on the M3M3 token. It alleged that Chow, Meteora, and the Davis family misled investors and profited through price manipulation, with as much as 95% of the M3M3 supply controlled by a small group of insiders. This level of control would make the token exceptionally vulnerable to coordinated trading actions.
The Expanded List: The amended lawsuit dramatically widens the scope, claiming that similar fraudulent activities may have occurred with up to 15 cryptocurrencies. Notably named are the MELANIA and LIBRA meme coins, which were publicly promoted by Melania Trump and Javier Milei, respectively. The inclusion of these tokens highlights the alleged strategy of using famous names as "window dressing" to borrow credibility and attract investor interest. The plaintiffs explicitly state that they are not holding the public figures liable, instead focusing on the developers and promoters who they claim orchestrated the schemes.
The Whistleblower's Role: A key piece of evidence cited in the new filing comes from a whistleblower. Private messages reportedly shared by this individual contain an admission from Hayden Davis that he carried out "at least fifteen token launches at Chow’s direction." This claim forms the basis for expanding the lawsuit from a single token case to one alleging a broader, coordinated pattern of behavior.
A Pattern of Denial and Mounting On-Chain Evidence
The defendants' public responses contrast sharply with the evidence being presented by blockchain analysts.
Public Statements and "Performative" Actions: Following the crash of the LIBRA token in February 2025, Meteora publicly blacklisted Kelsier Ventures. The plaintiffs have labeled this move "performative," suggesting it was an attempt to create distance after the fact rather than a genuine enforcement action. Furthermore, Chow and other Meteora leaders have previously made sworn declarations describing themselves as "passive developers of autonomous software," implying they had no control over or responsibility for the price action of tokens using their platform.
Blockchain Data Tells a Different Story: While Chow maintained his innocence upon leaving Meteora in February 2025, on-chain data appears to contradict these claims. A report from blockchain analysis firm Bubblemaps, dated February 17, 2025, provided concrete data. It traced wallet addresses that revealed clear financial links between the creators of the MELANIA and LIBRA tokens. More damningly, the analysis concluded that insiders involved with these tokens realized profits exceeding $100 million, providing a quantifiable figure for the alleged gains from the scheme.
Comparative Look at Key Projects in the Allegations
While multiple projects are named, two stand out due to their use of high-profile political figures.
MELANIA Token: This token leveraged the name and promotion of U.S. First Lady Melania Trump. Its association with a prominent American political figure likely gave it significant initial visibility and appeal within certain investor circles, making it a potent tool for the alleged marketing strategy.
LIBRA Token: Associated with Argentine President Javier Milei, a libertarian figure popular within some crypto communities, the LIBRA token had a different but equally powerful appeal. Milei's pro-Bitcoin stance may have lent an air of legitimacy to the project, making it particularly effective at attracting investors who align with his economic views.
Both tokens served the same alleged purpose within the scheme: using a famous person's brand to create trust and drive investment. Their relevance lies not in their technological differences but in their utility as marketing vehicles for what plaintiffs claim was a fraudulent operation.
Conclusion: A Critical Juncture for DeFi Accountability
The expanded lawsuit against Benjamin Chow and his associates represents more than just a legal proceeding; it is a stress test for accountability in decentralized finance. The allegations, if proven, describe a calculated effort to exploit both celebrity influence and the technical complexities of blockchain to defraud investors. The case underscores persistent vulnerabilities in the meme coin and nascent token space, where hype can often overshadow fundamental value.
For crypto readers and participants, this development serves as a stark reminder of the importance of due diligence. While decentralized platforms offer innovation and freedom, they also require users to navigate risks that are sometimes amplified by bad actors. The outcome of this case will be closely watched, as it could set important precedents regarding the legal responsibilities of developers and promoters operating in DeFi. Investors should monitor this case's progress and pay close attention to how regulatory bodies respond to such complex, multi-token allegations in the evolving digital asset landscape.