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Sbaiti & Company Secures With-Prejudice Dismissal for Kelsier Ventures in SDNY Digital-Asset Class Action
New York, NY — October 1, 2026 – The U.S. District Court for the Southern District of New York dismissed with prejudice the amended complaint in Hurlock v. Kelsier Labs, LLC, d/b/a Kelsier Ventures, denied the plaintiffs’ motion for leave to file a second amended complaint, and closed the district-court case.
The putative class action alleged claims connected to the launches of the $M3M3 and $LIBRA tokens. The court dismissed the RICO claims against Kelsier Ventures, Hayden Davis, and the other co-defendants after finding that the complaint did not plead the continuity required for a RICO pattern. It dismissed the remaining claims against the Kelsier defendants for lack of personal jurisdiction. The court also found that the plaintiffs’ proposed amended complaint would be futile.
“The court’s thorough opinion makes clear that the Plaintiffs lacked the factual and legal support for their claims from the start,” said Mazin Sbaiti, founding partner at Sbaiti & Company PLLC. “The dismissal with prejudice, combined with the denial of leave to amend, brings this matter to a definitive close for our clients.”
“The court recognized that our clients operate legitimate businesses and that plaintiffs’ allegations could not support a pattern of racketeering,” said George Padis, partner at Sbaiti & Company PLLC. “The opinion also makes clear that plaintiffs must establish jurisdiction over each defendant individually, a safeguard of particular importance in digital asset cases.”
“This substantial and decisive win for our clients resulted from top-notch strategic thinking, legal research, the ability to digest complex information, and the collaboration of the lawyers at Sbaiti & Company, a firm that has continued to impress me in their delivery of excellent legal services,” said co-counsel Cris Armenta.
Mazin A. Sbaiti and George M. Padis of Sbaiti & Company represented Kelsier Ventures, Hayden Davis, and the other Kelsier defendants. Cris Armenta represented Hayden Davis.
About Sbaiti & Company PLLC
Sbaiti & Company PLLC is a boutique litigation firm representing plaintiffs and defendants in high-stakes commercial disputes, including complex matters involving digital assets and cryptocurrency. The firm is committed to protecting its clients’ interests, fostering responsible innovation, and ensuring fair treatment under the law. For more information, please visit www.sbaitilaw.com.
