Judge Kills LIBRA Memecoin Lawsuit, Leaving Investors Stranded

A US judge has dismissed a lawsuit against LIBRA and M3M3 memecoins, leaving investors without a district-court path to recovery. The decision was made by Judge Jennifer L. Rochon in the Southern District of New York on September 29. The court found that investors failed to plead RICO continuity, and separate jurisdiction and pleading defects defeated other claims.

The lawsuit alleged that insiders controlled token launches and extracted funds from liquidity pools at outside investors' expense. LIBRA launched on February 14, 2025, after being promoted by Argentine President Javier Milei. However, he withdrew his support the same day.

Investors had also proposed expanding the lawsuit to three other tokens, but this was blocked by the court. The RICO claims relied on a pattern of related racketeering acts that either spanned a substantial period or threatened continuing criminal activity. However, the court found neither form of continuity adequately pleaded against the Kelsier defendants.

The dismissal resolved the legal sufficiency of the claims and the court's jurisdiction. It does not establish that every alleged act was lawful or determine the status of every other possible recovery route.