Solana: Meteora faces a rug pull allegation over M3M3 coin
The class-action lawsuit that Meteora faces for pump-and-dump schemes regarding the M3M3 meme coin launch has come as no surprise
Quick overview
- Meteora is facing a class-action lawsuit for alleged pump-and-dump schemes related to the M3M3 meme coin launch, with losses exceeding $69 million.
- The lawsuit accuses Meteora, its founder Benjamin Chow, and Kelsier Labs of manipulating the price of the Solana-based token for personal gain.
- It is claimed that insiders acquired over 95% of the M3M3 coin supply within 20 minutes, leading to a market crash after they dumped their holdings.
- The lawsuit also seeks to classify stake-based meme coins like M3M3 as securities to provide regulatory clarity for future tokens in the Solana market.
The class-action lawsuit that Meteora faces for pump-and-dump schemes regarding the M3M3 meme coin launch has come as no surprise. Pumped by Solana’s decentralized exchange, Meteora was always bound to attract attention.
According to the complaint, purported losses surpassed the $69 million mark from December 2024 to February 2025.
Meteora and its founder, Benjamin Chow, were also accused, along with venture firm Kelsier Labs and multiple executives. Claiming that the alt Solana token’s price was manipulated, the Motion Attack founders, Thomas Davis, Hayden, and Gideon, alleged that they profited from the Solana-based token at public expense
“Defendants are accused of arranging the launch of M3M3 on Meteora, to sell only to themselves and a select group of insiders,” the defendants’ lawyers claimed.
The claim also stated that some participants in the M3M3 scheme covertly snatched over 95% of the coin supply within the first 20 minutes. By purchasing access to over 150 wallets, these buyers didn’t just have access to pump the price but to inflate it.
Shortly after the rollout, a sharp market crash occurred due to the dumping of their holdings after the value spiked.
Investors were assured that the launch would be open and transparent, with staking rewards derived from the Meteora platform transaction costs.
However, according to the April lawsuit, these representations were made with deliberate deception. By requesting that stake-based meme coins like M3M3 be formally classified as securities, the application further aims to provide regulatory clarity. According to Burwick Law, this classification may impact every new political token or personality introduced to the Solana market.
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