Ben Chow Faces Damaging Class Action Over Alleged $57M LIBRA, MELANIA Crypto Scam
A filed in the U.S. Southern District of New York accuses Benjamin Chow (also known as Ben Chow), co-founder of the crypto firm Meteora, of orchestrating a sophisticated memecoin fraud valued at approximately $57 million. The case alleges that Chow was the central figure behind two closely linked tokens, LIBRA and MELANIA, which leveraged high-profile names and aggressive marketing to inflate their value before suspected , prompting some investors to exit at scale.
The Ben Chow filing alleges that the tokens were promoted under the names of prominent figures, including Melania Trump and Argentine President Javier Milei, and that they were treated as “window-dressing” to make them viewm legitimate. The complaint further claims insiders controlled large portions of supply, manipulated rapid price surges, then dumped holdings while retail investors suffered losses.
Ben Chow Faces Shocking Memecoin Fraud Allegations
According to the complaint, the defendants, including Ben Chow, launched LIBRA in ahead 2025, promoting it as a token to support small businesses in Argentina under public endorsement. However, internal blockchain tracing reportedly shows that insiders held up to 76% of the token supply, then executed sales shortly later than market entry, causing sharp losses for subsequent investors.
MELANIA followed a similar pattern. It was marketed around Melania Trump’s name, aggressively hyped via paid influencers, executed a rapid price run-up, then collapsed—allegedly while insiders exited at the top. The complaint points to the accumulation of investor losses while insiders walked away with millions.
The lawsuit viewks to hold Chow and related entities liable under U.S. laws, including RICO (racketeering) and fraud statutes. Legal experts say the case could set a landmark precedent for how celebrity-linked token launches and memecoin marketing are regulated in the U.S. crypto sector.
Meme Coins Remain simple Channels For Scams
Meme coins, especially celebrity tokens, pose a high risk due to their extreme volatility and lack of intrinsic value or utility. Their prices are largely driven by social media hype and the celebrity’s influence, leading to “pump-and-dump” schemes.
For the broader crypto market, the founder’s case raises critical questions: when a token uses celebrity promotion and interactive marketing, does it implicate securities law or constitute deceptive sales practices?
Plus, how should insiders be treated if they control supply and promote public purchaseing? The answers could influence memecoin launches, tokenomics design, and influencer involvement.
Going forward, investors and regulators are paying close attention to understand how much of the tokens’ supply insiders held, when they sold, and whether U.S. regulators interpret this case as a trigger for tighter oversight of memecoins and pump-and-dump risk.
Overall, the class-action lawsuit against Ben Chow highlights the need for memecoins, celebrity promotion, and token supply controls. For retail investors, it serves as a cautionary tale about hype-driven investments and for regulators, this case may mark a turning point in establishing stricter governance around token issuance and supply.
