LIBRA Meme Coin: Lawsuit Setback Triggers Price Volatility
LIBRA Lawsuit Takes Unexpected Turn
A US Federal Judge has unfrozen $57.5 million in assets belonging to LIBRA meme coin promoters Hayden Davis and Ben Chow. This decision led to a brief price surge for the coin before it quickly declined. Judge Rochon suggested the lawsuit against Davis and Chow may ultimately fail.
The crypto community has reacted with skepticism to this development, particularly given that President Milei previously dissolved the task force investigating the coin. This raises concerns that the promoters may avoid any serious repercussions.
Details of the LIBRA Legal Battle
The LIBRA meme coin previously sparked controversy in Argentina, with accusations of a rug pull implicating President Milei and members of his cabinet.
Burwick Law initiated a suit against Hayden Davis and Ben Chow, alleging their involvement as promoters. Now, the lifting of the asset freeze represents a significant setback for the case. The court originally froze the $57.5 million in USDC in May.
This turn of events is unexpected, considering Ben Chow resigned from Meteora due to the scandal, and arrest warrants were issued for Hayden Davis. Judge Rochon's warning about the potential failure of Burwick's lawsuit adds further uncertainty.
Crypto Community Reacts with Cynicism
The LIBRA situation raises questions about accountability within the crypto space. President Milei appears to have avoided consequences, while Burwick's lawsuit now faces an uphill battle.
The crypto community has expressed its discontent, especially in light of the guilty verdict in the Roman Storm/Tornado Cash trial. The phrase "crime is legal now" has been circulating online, reflecting a sense of disillusionment.
Two weeks after Roman Storm was found guilty for simply building Tornado Cash, Hayden Davis and Ben Chow are one step closer to walking away as free men
Absolutely disgusting behavior from the judicial system https://t.co/0cDvwbBRH8— Squiffs (@Squiffs_) August 20, 2025
The outcome of the LIBRA scandal remains uncertain. However, such incidents risk fostering cynicism within the crypto community, potentially affecting future investment decisions, particularly in meme coins.
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