A federal judge in the U.S. District Court for the Eastern District of New York has dismissed a class action lawsuit tied to the ME token against Euclid Labs, the operating entity behind Magic Eden, and co-founder Zhuoxun Yin. Plaintiffs had alleged that the platform promoted the token as having cross-chain and buyback-related utility, then later shifted into a gambling platform, which they said was followed by a price drop of more than 98% in ME. The court found that wallet terms accepted by users contained a valid class action waiver, which meant the federal court lacked subject-matter jurisdiction under the Class Action Fairness Act. The judge also ruled that the court lacked personal jurisdiction over Zhuoxun Yin. The decision applies only at the pleading stage, and other defendants, including CEO Jack Lu, remain listed in the case.
According to Odaily, a judge in the U.S. District Court for the Eastern District of New York has dismissed a class action lawsuit over the ME token against Euclid Labs, the Magic Eden operating entity, and co-founder Zhuoxun Yin.
The plaintiffs alleged that the platform had promoted ME as a token with cross-chain and buyback-related utility, then later shifted into a gambling platform, after which the token price fell by more than 98%. The court held that the wallet terms accepted by users included a valid class action waiver, leaving the federal court without 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 at the pleading stage. Other defendants, including CEO Jack Lu, remain on the lawsuit's defendant list.
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