In a notable development within the decentralized finance (DeFi) sector, Ben Chow, co-founder of the DeFi platform Meteora, has resigned amid a scandal involving the controversial Libra memecoin. This announcement was made by Meow, the pseudonymous founder of both the Solana decentralized exchange Jupiter and Meteora, on February 17.
Allegations and Controversy
Chow’s departure follows allegations of insider trading related to the launch of the Libra token, which has come under scrutiny after being promoted by Argentina’s President Javier Milei. The Libra memecoin gained attention when Milei claimed it would enhance Argentina’s economy, resulting in a rapid increase in its price to billions.
However, this surge was short-lived, as the token’s value fell sharply after Milei retracted his support. The Libra team used Meteora’s platform to create liquidity pools for the token, which has now become central to the controversy surrounding Chow’s leadership.
Accusations of Insider Trading
Hayden Davis, CEO of Kelsier Ventures, has publicly accused the Libra team of engaging in insider trading during the token’s launch. In an interview, Davis stated that it is common for teams to use insider knowledge to buy their own tokens before a launch. This claim has raised concerns about ethical practices within the memecoin sector, particularly regarding the transparency and integrity of token launches.
Chow has strongly denied any involvement in insider trading related to Libra, asserting that neither he nor Meteora received tokens or had special access to the project. He clarified that their role was limited to providing IT support and that they did not leak information or purchase Libra tokens.
Impact on Chow and Meteora
Despite these denials, the allegations have tarnished Chow’s reputation and the credibility of Meteora. A leaked video from February 18 revealed a conversation between Chow and Dhirk, the founder of DeFiTuna. In this recording, Dhirk accused Kelsier Ventures of insider trading during memecoin launches, claiming to have witnessed such behavior firsthand during a visit to Barcelona.
Chow expressed significant concern over his past associations, stating, “I feel sick because I introduced him to Melania. I messed up. I enabled someone I shouldn’t have.” This admission indicates that Chow’s resignation was a direct result of his misjudgment in associating with Kelsier Ventures.
Support and Future Investigations
Despite the turmoil, Meow has publicly supported Chow, asserting that he has not engaged in any financial misconduct. Meow confirmed that neither Meteora nor Jupiter participated in insider trading and announced plans to hire an independent third party to conduct a thorough investigation into the allegations.
This initiative aims to restore confidence in the platform and clarify the circumstances surrounding the Libra memecoin launch. With Chow’s resignation, Meteora now faces the challenge of finding new leadership to manage the fallout from the scandal.
Lessons for the DeFi Sector
The DeFi space is characterized by rapid evolution and volatility, and the events surrounding the Libra memecoin have underscored the necessity for greater transparency and accountability within the industry. As the investigation progresses, stakeholders will closely monitor developments to evaluate the impact on Meteora’s reputation and future operations.
The controversy surrounding the Libra memecoin serves as a cautionary tale for the DeFi sector, highlighting the importance of ethical practices and the potential repercussions of misjudgment. As the market matures, the demand for robust governance and regulatory frameworks will become increasingly vital to ensure the integrity of token launches and protect investors from potential misconduct.
📎 Related coverage from: coinchapter.com
