US judge kills Milei’s LIBRA memecoin lawsuit, leaving investors stranded

Investors in LIBRA, the memecoin promoted by Argentine President Javier Milei, lost a district-court route to recovering their losses after a US judge dismissed the proposed class action over LIBRA and fellow memecoin M3M3.In a Sept. 29 opinion, Judge Jennifer L. Rochon dismissed the amended complaint with prejudice, denied permission to amend it again and ordered the Southern District of New York case closed. The decision also blocked investors' proposed expansion of the lawsuit to three other tokens.The plaintiffs alleged that insiders controlled token launches and extracted funds from liquidity pools at outside investors' expense.According to the complaint as recounted by the court, LIBRA launched on Feb. 14, 2025, and Milei promoted it before withdrawing his support that day. The dismissal resolved the legal sufficiency of the claims and the court's jurisdiction.Why the racketeering claims in the LIBRA case failedThe central federal claim relied on the Racketeer Influenced and Corrupt Organizations Act, or RICO. It requires a pattern of related racketeering acts that either spans a substantial period or threatens continuing criminal activity.The court found neither form of cont...