Fast overview
- Meteora is going through a class-action lawsuit for alleged pump-and-dump schemes associated to the M3M3 meme coin launch, with losses exceeding $69 million.
- The lawsuit accuses Meteora, its founder Benjamin Chow, and Kelsier Labs of manipulating the value of the Solana-based token for private achieve.
- It’s claimed that insiders acquired over 95% of the M3M3 coin provide inside 20 minutes, resulting in a market crash after they dumped their holdings.
- The lawsuit additionally seeks to categorise stake-based meme cash like M3M3 as securities to supply regulatory readability for future tokens within the Solana market.
The category-action lawsuit that Meteora faces for pump-and-dump schemes concerning the M3M3 meme coin launch has come as no shock. Pumped by Solana’s decentralized exchange, Meteora was at all times sure to draw consideration.
In accordance with the grievance, purported losses surpassed the $69 million mark from December 2024 to February 2025.
Meteora and its founder, Benjamin Chow, have been additionally accused, together with enterprise agency Kelsier Labs and a number of executives. Claiming that the alt Solana token’s value was manipulated, the Movement Assault founders, Thomas Davis, Hayden, and Gideon, alleged that they profited from the Solana-based token at public expense
“Defendants are accused of arranging the launch of M3M3 on Meteora, to promote solely to themselves and a choose group of insiders,” the defendants’ legal professionals claimed.
The declare additionally said that some contributors within the M3M3 scheme covertly snatched over 95% of the coin provide throughout the first 20 minutes. By buying entry to over 150 wallets, these consumers didn’t simply have entry to pump the value however to inflate it.
Shortly after the rollout, a sharp market crash occurred as a result of dumping of their holdings after the worth spiked.
Traders have been assured that the launch can be open and clear, with staking rewards derived from the Meteora platform transaction prices.
Nonetheless, in response to the April lawsuit, these representations have been made with deliberate deception. By requesting that stake-based meme cash like M3M3 be formally categorised as securities, the applying additional goals to supply regulatory readability. In accordance with Burwick Regulation, this classification could impression each new political token or character launched to the Solana market.
Olumide Adesina
Monetary Market Author
Olumide Adesina is a French-born Nigerian monetary author. He tracks, analyzes, and studies adjustments in monetary markets with over 15 years of working expertise in funding buying and selling.
