According to a complaint filed in the U.S. District Court for the Southern District of New York, investors accuse Believe founder Ben Pasternak of using Launchcoin-linked token migrations to extract $54 million in fees while leaving holders with losses.
A class-action lawsuit accuses Believe founder Ben Pasternak of extracting $54 million in fees through token migrations tied to Launchcoin while investors allegedly suffered losses. According to the complaint, filed in the U.S. District Court for the Southern District of New York, the migration process imposed a two-week window, diluted token holders, and permanently burned assets that missed the deadline. The suit also alleges that wallets linked to insiders were involved in the operation, making the structure of the migration, the fee design, and wallet activity central to the dispute.