Federal Judge’s Dismissal Closes Door on $LIBRA, $M3M3 Saga

Hopes of seeing Hayden Davis face justice for a sequence of malicious token launches were dashed this week, with Judge Jennifer Rochon dismissing with prejudice the case against the crypto’s public enemy number one.

Rochon’s decision has been met with disappointment by the Solana faithful, who were deeply dissatisfied to learn that Hayden Davis and his co-conspirators are effectively cleared of all wrongdoing in the eyes of the law.

Responsible for some of last cycle’s most egregious token launches, like $LIBRA, $MELANIA, $ENRON, $TRUST, and $M3M3, onchain analytics suggests Davis won’t hesitate to reattempt similar extraction tactics.

$LIBRA, $M3M3 Case Tossed

In the early hours of October 4th, Givner Law founder Ariel Givner highlighted the outcomes of recent courtroom events pertaining to the case against members of the Davis family, Ben Chow, Meteora, and Kelsier Ventures over RICO charges in the $LIBRA, $M3M3 case. 

Judge Rochon has dismissed the case with prejudice, effectively meaning that the case against Davis and the other defendants is permanently closed. The plaintiffs, in this case Omar Hurlock and Anuj Mehta, cannot file the same lawsuit or charge again.

The suit was dismissed on the grounds that the plaintiffs took the wrong approach to the case. According to Givner’s analysis, the “plaintiffs sued the wrong thing, under the wrong statute, with the wrong facts.”

Despite the Davis Family’s well-documented history of egregious token launches, which include alleged manipulation of Argentinian President Javiar Milei, Judge Rochon argues the defendants did not meet the legal requirements for a continued pattern of racketeering. Excerpts from court documents suggest that six months is not a “substantial period of time” to qualify for a RICO case.

Meanwhile, Meteora has also been absolved of any responsibility on the grounds that the popular Solana DEX is a piece of software, and has no legal existence by which it can be sued.

“Scamming is Legal” - Solana Community Disappointed by Outcome

News of the case’s dismissal came as a harsh blow for the Solana community. Network participants have mourned the outcome, expressing disappointment with the message it sends to the wider industry.

According to the U.S. Justice system, manipulating global figures like Argentinian President Javier Milei and First Lady Melania Trump to manufacture demand for memecoins doesn’t qualify as racketeering.

Over the course of several months, Kelsier Ventures, an investment firm led by the Davis family, launched a series of memecoins designed to extract value from retail traders. While best known for orchestrating $LIBRA and $MELANIA, Kelsier Ventures was reportedly also behind other high-profile launches, including $TRUST, $ENRON, and $M3M3.

Despite facing immense pressure from the crypto community and allegedly hiding out in Argentina in the wake of the $LIBRA scandal, onchain data suggests that Hayden Davis won’t shy away from his illicit antics. In March 2025, Bubblemaps tied wallet activity leading to the $WOLF meme token rugpull back to the Kelsier CEO.

Prior to concocting a series of extractive launches, Hayden Davis’s father Tom Davis spent one year in prison on fraud charges after being found guilty of counterfeiting checks and assuming fake identities.

Read Your Terms and Conditions

Beyond the Davis & Meteora case, the U.S. justice system has dismissed another crypto case in recent weeks. A case against Euclid Labs, the entity behind Magic Eden, has been thrown out on a motion to dismiss.

After losing a $2,000 investment in Magic Eden’s native token $ME, Jamie Pagan sued Euclid Labs under New York consumer law. Despite Pagan’s various complaints, the case was ultimately thrown out because the Magic Eden Wallet’s Terms of Use waived class action suits.

It appears similar terms have also been applied to the Drift Protocol claims portal. As part of a larger recovery plan following the April 1st hack that resulted in the loss of over $285M, Drift Protocol is distributing DFX tokens, which represent a pro-rata share of the recovery pool, among users. As part of the claims process, affected users agree they will “hold harmless” and “waive any claim” against the protocol. 

Read More on SolanaFloor

Markets are bullish on Backpack

$BP Surges 255% in 30D Following Strong Month for Tokenized Equity Trading

Robinhood vs Solana: By The Numbers