Magic Eden, Founders Sued by $ME Buyers Over Broken 'Utility' Promises
Three $ME token buyers sued Magic Eden and its four co-founders, alleging the company promoted the tokens use cases — multichain trading, governance, staking rewards, and revenue sharing — then delayed, diminished, or abandoned them, according to a class-action complaint filed in federal court in New York. Jaime Pagan, Ariel Ruano and Chris Sadowski filed the suit on June 16 in the U.S. District Court for the Eastern District of New York against co-founders Jack Lu, Zhuoxun Yin, Sidney Zhang and Zhuojie Zhou, along with Euclid Labs Inc., which does business as Magic Eden, and the ME Foundation. The plaintiffs are represented by Max Burwick of Burwick Law, a firm that has brought several consumer class actions against crypto issuers. $ME traded at about $0.056 on Tuesday, leaving it down roughly 99% from its post-launch high and giving it a market capitalization of about $34 million, according to CoinGecko data. The token slipped 3.8% over the prior 24 hours, compared with BTCs 2.4% decline. The complaint, which cites prices as of its filing date, says the token reached about $5.63 on Dec. 11, 2024 — excluding a launch-day spike on thin liquidity — and had fallen about 98%, to roughly $0.12, by mid-June. The