Judge Unfreezes $57.6M USDC Tied to Libra Token Debacle
US Judge Unfreezes $57.6 Million in USDC Stablecoins
A U.S. judge has ordered the release of $57.6 million in USDC stablecoins that were previously frozen in connection to the Libra token controversy. The funds are now accessible to Hayden Davis, a promoter of memecoins, and Ben Chow, the former CEO of Meteora, a decentralized exchange.
Judge Jennifer L. Rochon initially froze the funds in May as part of a class-action lawsuit against Davis, Chow, KIP Protocol, and its co-founder Julian Peh.
The court determined that the defendants had not demonstrated “irreparable” harm, as funds remained available to compensate potential victims, and no attempts had been made to move the frozen assets, according to Law360.
Davis's motion to dismiss the lawsuit was previously denied. Despite this, Judge Rochon expressed skepticism regarding the likelihood of success for the class-action suit.
Libra Token Scandal: A Crypto World Shake-Up
The Libra token incident, considered a significant rug pull, even involved Argentine President Javier Milei, leading to an ethics investigation and multiple investor class-action lawsuits.
The Libra token, launched in February, was marketed as a support mechanism for Argentinian small businesses and initially promoted by Milei on social media.
However, the token crashed soon after launch, triggering widespread investor outrage over what many described as a $107 million rug pull.
Milei distanced himself from the project, claiming no knowledge of its underlying mechanisms.
Despite Milei’s denial, a congressional probe ensued, examining potential ethics violations and even calls for Milei’s impeachment.
Milei later shut down the investigation without any findings of wrongdoing, sparking allegations of a politically driven cover-up.