Ben Chow, co-founder of Solana-based decentralized exchange Meteora, has resigned following allegations that he privately received or managed LIBRA tokens. The resignation comes amid a growing controversy surrounding the LIBRA memecoin, which skyrocketed in value before collapsing, leading to accusations of insider trading and market manipulation.
Chow Steps Down as Investigation Begins
Chow’s resignation was announced by Meow, the pseudonymous co-founder of both Meteora and Jupiter, in a post on X (formerly Twitter). Meow emphasized their commitment to transparency and reassured the community that neither project engaged in financial misconduct.
To ensure accountability, the companies have enlisted Fenwick & West, a respected legal firm, to conduct an independent investigation into the claims. Meow confirmed that the findings will be made public once the probe concludes.
“Meteora has operated independently from Jupiter for over a year,” Meow stated, clarifying that while Chow led Meteora, his decision-making in recent months had raised concerns regarding the project’s core operations.
LIBRA Memecoin Controversy and Market Manipulation Claims
The LIBRA memecoin, which Chow was allegedly linked to, gained massive attention after Argentine President Javier Milei publicly promoted it. Following Milei’s endorsement, LIBRA’s value surged past $4 before crashing to below 50 cents, leading to speculation of a “rug pull” scam.
Reports suggest that insiders may have cashed out over $100 million, while retail investors suffered substantial losses. The sharp decline in LIBRA’s price has fueled allegations of market manipulation, adding further scrutiny to those associated with the token.
Political Fallout and Legal Actions
The scandal has also ignited a political crisis in Argentina, with opposition leaders demanding Milei’s resignation over his involvement with LIBRA. The country’s Anti-Corruption Office has launched a review of the case, and Federal Judge María Servini is now leading a legal probe into the matter.
Meanwhile, in the broader crypto space, the LIBRA incident has once again highlighted the risks of memecoin speculation. On February 17, Binance co-founder Changpeng Zhao announced that he would donate 150 Binance Coin (BNB) in an effort to compensate victims of the alleged scam.
Future Implications
The LIBRA controversy has sent shockwaves through the crypto industry, raising concerns over insider trading, regulatory scrutiny, and the credibility of high-profile endorsements. As investigations unfold, the outcome of this case could shape the future of crypto governance and investor protection measures.
For now, Meteora moves forward without Ben Chow at the helm, as the community awaits the results of the independent audit into his alleged involvement with LIBRA.
