US judge dismisses ME token class action against Magic Eden operator

BlockBeats news, October 1st, according to crypto lawyer Ariel Givner, a federal judge in the Eastern District of New York has dismissed the class action lawsuit against Magic Eden's operating entity Euclid Labs and its co-founder Zhuoxun Yin over the ME token.

The plaintiffs alleged that the platform promoted the ME token as having cross-chain and buyback capabilities before pivoting to a gambling platform, causing the token price to plummet by over 98%. However, the judge determined that the wallet terms signed by users explicitly contained a valid class action waiver, leading the federal court to lose subject matter jurisdiction under the Class Action Fairness Act (CAFA), and also ruled that there was no personal jurisdiction over the co-founder. This ruling applies only to the pleading stage, and other defendants, including CEO Jack Lu, remain in the lawsuit.