US judge dismisses class-action lawsuit against operator of Magic Eden over ME token

According to crypto lawyer Ariel Givner, a judge at the U.S. District Court for the Eastern District of New York has dismissed a class-action lawsuit targeting Magic Eden’s operating entity Euclid Labs and its co-founder Zhuoxun Yin. The plaintiffs alleged that the platform, after promoting that the ME token would have features like cross-chain functionality and buybacks, transformed into a gambling platform, leading to the token’s price plummeting by over 98%. However, the judge ruled that the wallet terms signed by users explicitly include valid class-action waiver clauses, which left the federal court without subject-matter jurisdiction under the Class Action Fairness Act (CAFA). The court also held that it lacked personal jurisdiction over the co-founder. This ruling applies only to the pleading stage; other defendants, including CEO Jack Lu, remain on the lawsuit’s defendant list.