$57M USDC Freeze in Libra Memecoin Scandal
A US federal court issued a temporary restraining order, freezing $57.65 million worth of USDC stablecoin. This action is part of a class-action lawsuit against Kelsier Ventures and its founders, alleging fraud related to the controversial Libra memecoin.
Libra Memecoin Scandal and the USDC Freeze
The lawsuit, filed by Omar Hurlock and other plaintiffs, claims Kelsier Ventures misled investors, siphoning over $100 million through one-sided liquidity pools. The court’s action freezes funds held at Circle, with a hearing scheduled for June 9th to determine the asset's future.
Onchain data reveals that two Solana wallets, holding a combined $57.65 million in USDC, were frozen. One wallet held $44.59 million, while the other contained $13.06 million. The Multisig Freeze Authority executed the freeze.
Impact and Investigation
The Libra memecoin, briefly reaching a $4 billion market cap before a 94% crash, caused a political scandal in Argentina involving President Javier Milei. While a task force investigating the scandal was subsequently dissolved, the lack of action has sparked criticism.
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