US judge dismisses ME token class action against Magic Eden operator

Odaily reports: A judge in the US District Court for the Eastern District of New York has dismissed a class action lawsuit over the ME token against Euclid Labs, the operating entity behind Magic Eden, and its co-founder Zhuoxun Yin. The plaintiffs alleged that the platform had promoted the ME token as offering cross-chain capabilities and buyback benefits, but later pivoted to a gambling platform, causing the token price to fall by more than 98%.

The judge determined that the wallet terms signed by users contained a valid class action waiver, and the federal court therefore lacked subject matter jurisdiction under the Class Action Fairness Act; the court also ruled that it lacked personal jurisdiction over Zhuoxun Yin. The ruling applies only to the pleading stage, and other defendants, including CEO Jack Lu, remain in the lawsuit.