Meteora and Kelsier Labs face class action lawsuit for manipulating M3M3 token issuance

According to Cointelegraph, a group of investors have filed a class action lawsuit against the decentralized cryptocurrency exchange Meteora, accusing the company of manipulating the issuance and market price of the M3M3 token. According to the amended lawsuit submitted to the Southern District Federal Court of New York on April 21, the plaintiff alleges that venture capital firms Kelsier Labs, Meteora, and four current or former executives were involved in the M3M3 issuance in December 2024; Intentional false statements&34;. Investors claim that the defendant packaged the token issuance as a project led by a trusted leader of the Solana ecosystem, rather than a "blatant fraud," resulting in them losing at least $69 million between December 2024 and February 2025. The lawsuit points out that the defendant manipulated sellers to artificially raise prices, creating the illusion that tokens have intrinsic value, and inducing ordinary investors to take over. The plaintiff accuses the defendant of "conspiring to design the M3M3 token issuance plan, illegally profiting at the expense of sacrificing the interests of the uninformed public". Previously, Meteora was also involved in the issuance of multiple controversial tokens such as TRUMP and MELANIA. In March, companies such as Kelsier Ventures were sued in New York for allegedly "deceptive and manipulative" issuance of the LIBRA token, which was briefly promoted by Argentine President Javier Milei.