US court freezes $57M USDC allegedly linked to LIBRA scandal
A US federal court has frozen approximately $57.65 million in USDC as part of a class action lawsuit concerning the Libra memecoin. The freeze occurred on May 28 after a Temporary Restraining Order was issued by the Southern District of New York. A hearing is scheduled for June 9 to decide on the asset's status. The lawsuit, led by Omar Hurlock against Kelsier Ventures and its co-founders, alleges misleading practices that resulted in over $100 million losses for investors. Additional defendants include KIP Protocol and its CEO, Julian Peh, and Meteora's co-founder, Benjamin Chow. The Libra cryptocurrency experienced a market cap of $4 billion before crashing 94% shortly after a promotional post by Argentine President Javier Milei. Milei's administration faced political backlash, but he later closed an investigation into the scandal without any actions against officials involved. Two Solana wallets containing the frozen USDC were identified, with significant amounts attributed to specific addresses. Critics claim the investigation was insufficient and lacked genuine inquiry.
