Class Action Filed Against Meteora for Misrepresentation in $M3M3 Token Launch
On Saturday, April 19, 2025, Jonathan Clarke and Rodrigo Ferreira Da Cruz Vogt filed a class action complaint in the US District Court for the Southern District of New York against Benjamin Chow, Meteora, Hayden Davis, Gideon Davis, Charles Thomas Davis, and Kelsier Labs LLC, doing business as Kelsier Ventures.
The complaint centers around allegations of fraud and the unregistered sale of securities related to the $M3M3 token, a cryptocurrency purportedly launched on the decentralized exchange Meteora. The plaintiffs, representing themselves and others similarly situated, claim that the defendants engaged in a coordinated scheme to defraud investors by promoting the $M3M3 token as a low-risk investment while concealing critical information about its true nature.
According to the complaint, the defendants marketed the $M3M3 token as a revolutionary investment opportunity, emphasizing its ties to the innovative M3M3 platform on Meteora. Plaintiffs assert that on December 4, 2024, the defendants publicly introduced the token, claiming it would provide investors with stable returns and protection against common pitfalls in the memecoin market. This claim was reportedly backed by the involvement of Chow, who was described as a respected figure in the cryptocurrency community.
However, the lawsuit alleges that the reality of the $M3M3 launch was starkly different. The plaintiffs contend that the defendants secretly controlled a significant portion of the token supply and manipulated its market value. They claim that only a small percentage of the total tokens were made available to the public, while the majority were retained by insiders, allowing them to artificially inflate the price before selling to unsuspecting investors.
The complaint outlines that during the initial launch period, the defendants allegedly froze the liquidity pool, preventing regular investors from executing purchases. This tactic allegedly allowed insiders to dominate the market, with claims that over 95% of the token supply was acquired by insiders shortly after the launch. Following the initial trading, the token’s price reportedly spiked dramatically before collapsing, leading to significant financial losses for non-insider investors.
The plaintiffs allege that the defendants’ actions violated multiple sections of the Securities Act of 1933 and the Securities Exchange Act of 1934, specifically citing the sale of unregistered securities and fraudulent misrepresentation. They argue that the $M3M3 tokens qualify as securities under federal law, thereby requiring registration and compliance with disclosure requirements.
In their class action filing, Clarke and Vogt detail their personal financial losses, claiming that Clarke lost approximately $28.59 and Vogt lost around $7,425.76 due to the alleged fraudulent activities surrounding the $M3M3 token.
The lawsuit seeks various forms of relief, including compensatory and punitive damages for the plaintiffs and all class members affected by the defendants’ alleged misconduct. It also requests the court to certify the class action and appoint a receiver to oversee the assets and operations of Meteora.
Please contact BlockTribune for access to a copy of this filing.
