Ben Chow, the co-founder of the Meteora platform, left his post after allegations of insider trading related to the collapse of the LIBRA token. This token, initially backed by Argentine President Javier Millier, lost more than 90% of its value in just a few hours after launch, which caused a wave of criticism and investigations.
Meow, the co-founder of the Meteora and Jupiter cryptocurrency exchanges, confirmed in a recent tweet that Ben Chow was resigning, pointing out that he had performed poorly as a project manager in recent months. At the same time, neither Chow nor Meow made any comments to reporters about the allegations.
Blockchain analysts drew attention to suspicious transactions: a significant number of tokens were sold at the peak of their value, which gave rise to suspicion of insider trading. Meteora, which provided technical support for the LIBRA launch, was at the center of this scandal.
Amid the growing pressure, Meow stated that neither Jupiter nor Meteora were involved in financial fraud, stressing that their platform provides tools for everyone, but is not involved in making decisions about token launches. However, Chow acknowledged that his company had some interaction with Kelsier Ventures, the organization involved in the launch of LIBRA, as well as the TRUMP and MELANIA tokens.
In an attempt to restore trust in Meteora, the company's management announced plans for an independent investigation. To do this, they plan to involve the California law firm Fenwick & West to thoroughly examine the circumstances of LIBRA's launch and the possible involvement of insiders.
This incident raises important questions about transparency and ethics in the cryptocurrency space. How should platforms prevent similar cases in the future? Is it possible, in principle, to completely eliminate insider trading in the decentralized world of cryptocurrencies?
