{"id":29258,"date":"2025-05-29T14:46:57","date_gmt":"2025-05-29T14:46:57","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=29258"},"modified":"2025-05-29T14:46:57","modified_gmt":"2025-05-29T14:46:57","slug":"us-court-blocks-57m-in-usdc-amid-libra-token-controversy","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=29258","title":{"rendered":"US Court Blocks $57M in USDC Amid LIBRA Token Controversy"},"content":{"rendered":"<div>\n<p>A US federal court has frozen approximately $57.65 million worth of USDC stablecoins in connection with a class action lawsuit linked to the LIBRA token scam that took place a couple of months ago.<\/p>\n<p>On 28 May 2025, the US District Court for the Southern District of New York issued a Temporary Restraining Order that froze the assets. The amount will remain frozen till June 9th, when a hearing is scheduled to determine if the freeze will remain in effect while the lawsuit proceeds.<\/p>\n<p>Circle\u2019s multi-sig freeze authority froze two Solana wallets in connection with the LIBRA deployer and project team as part of the ongoing lawsuit filed by the New York-based law firm Burwick.<\/p>\n<p>As a part of the lawsuit, numerous LIBRA investors are suing Kelsier Ventures, a crypto firm, along with its co-founders, Gideon, Thomas, and Hayden Davis.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">ALERT: $57M OF USDC ASSOCIATED WITH LIBRA FROZEN BY CIRCLE<\/p>\n<p>Two Libra accounts have just been frozen by Circle, including the Libra deployer wallet.<\/p>\n<p>These accounts contained a combined $57M in USDC which is now immobile. <a href=\"https:\/\/t.co\/HpmaM5HwVJ\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/HpmaM5HwVJ<\/a><\/p>\n<p>\u2014 Arkham (@arkham) <a href=\"https:\/\/twitter.com\/arkham\/status\/1927801316178546958?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">May 28, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Other defendants in this case include Benjamin Chow, the co-founder of Meteora, a Solana-based DeFi platform; Julian Peh of KIP Protocol, a decentralised AI framework focused on digital property rights; and other organisations involved in the marketing of the LIBRA token.<\/p>\n<p><strong>Explore<\/strong>:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/crypto-presales\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">The 12+ Hottest Crypto Presales to Buy Right Now<\/a><\/p>\n<h2><strong>Background on the Lawsuit<\/strong><\/h2>\n<p>The LIBRA memecoin <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/news\/majority-of-argentinians-lose-trust-in-president-milei-amid-4-6b-libra-crypto-scandal\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">attracted attention<\/a> after a post on X by Argentinian President Javier Milei on 14 February 2025. The token was advertised as a means to fund small businesses in Argentina.<\/p>\n<p>Within an hour of Milei\u2019s advertisement on X, the LIBRA token\u2019s value surged from a few cents to $5, and its market cap surged to $4 billion, only to crash by 94% within hours.<\/p>\n<p>Reportedly, insiders controlling more than 70% of the supply dumped large amounts, sending the LIBRA token\u2019s value spiralling downwards.<\/p>\n<p>This sparked a political outrage in Argentina, with members of the opposition calling for Milei\u2019s impeachment. Although the movement failed to gather momentum, a poll conducted in March 2025 by Zuban C\u00f3rdoba suggested that the scandal harmed Milei\u2019s approval rating and public image.<\/p>\n<p>Burwick filed the lawsuit on 17 March 2025, alleging that the defendants launched the LIBRA cryptocurrency and deceived investors, ultimately misappropriating over $150 million while investors lost over $250 million.<\/p>\n<p>Solscan, a blockchain explorer for Solana, disclosed <a class=\"general-link\" href=\"https:\/\/solscan.io\/tx\/5J7GJv4gMcRSmAaRHAHNtaqpVnbcrWZ4f9kR1cb2BYYrgQJqsWkw7vRhweJAjJhW4ooH8eBNyMf8hBagAi6WKKXv\" target=\"_blank\" rel=\"noopener nofollow\">data<\/a> showcasing that the authorities froze approximately $44.59 million in stablecoins at the address 3Fwr\u2026ZQpK, while someone locked more than $13 million from the wallet 3nHw\u2026xNgH.<\/p>\n<p>The asset freeze indicates that the US courts are ready to intervene to mitigate further losses and to ensure potential compensation for the victims. If successful, this case could set a new precedent and hold crypto founders and promoters accountable for misleading investors and fueling speculative hype cycles.<\/p>\n<p><strong>Explore<\/strong>:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/best-crypto-to-buy\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">Top 20 Crypto to Buy in May 2025<\/a><\/p>\n<h2><strong>Milei Shuts Down LIBRA Token Investigation<\/strong><\/h2>\n<p>On 19 May 2025, Milei signed a decree to <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/news\/presales\/president-milei-shuts-down-investigation-into-libra-crypto-scandal\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">disband<\/a> the investigative task force probing the LIBRA scandal. Notably, authorities have not brought any charges against Milei or any other Argentinian officials linked to the controversy.<\/p>\n<p>Itai Hagman, a member of the Chamber of Deputies of Argentina, said, \u201cIt was always a fake, they never dared to investigate anything at all, and they\u2019re covering each other up because they\u2019re completely up to their necks in it.\u201d<\/p>\n<p>So far, the only explanation provided by the authorities for disbanding the task force is that it had fulfilled its assigned function.<\/p>\n<p><strong>Explore<\/strong>:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/new-cryptocurrency\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">Best New Cryptocurrencies to Invest in 2025<\/a><\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h2 class=\"nnbtc-key-takeaways__title\">Key Takeaways<\/h2>\n<ul class=\"nnbtc-key-takeaways__list\">\n<li class=\"nnbtc-key-takeaways__list-item\">\n        A U.S. federal court has frozen $57.65M in USDC amid a class action lawsuit over the LIBRA token scam    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        The funds stay frozen until June 9th, pending a hearing on whether the freeze continues during the lawsuit    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        LIBRA investors are suing Kelsier Ventures, a crypto firm, along with its co-founders, Gideon, Thomas, and Hayden Davis    <\/li>\n<\/ul><\/div>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/us-court-blocks-57m-in-usdc-amid-libra-token-controversy\/\">US Court Blocks $57M in USDC Amid LIBRA Token Controversy<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A US federal court has frozen approximately $57.65 million worth of USDC stablecoins in connection with a class action lawsuit linked to the LIBRA token scam that took place a couple of months ago. On 28 May 2025, the US District Court for the Southern District of New York issued a Temporary Restraining Order that [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-29258","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/29258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29258"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/29258\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}