{"id":130195,"date":"2025-05-29T01:15:44","date_gmt":"2025-05-29T01:15:44","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=130195"},"modified":"2025-05-29T01:15:44","modified_gmt":"2025-05-29T01:15:44","slug":"us-court-freezes-57m-usdc-allegedly-linked-to-libra-scandal","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=130195","title":{"rendered":"US court freezes $57M USDC allegedly linked to LIBRA scandal"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsA US federal court has frozen around $57.65 million worth of the stablecoin USDC in a class action case over the controversial Libra memecoin.<br \/>\nOnchain data shared with Cointelegraph by the class group\u2019s lawyer, Max Burwick, shows nearly $57 million worth of USDC (USDC) was frozen on May 28 after a Manhattan court agreed to a temporary freeze.<br \/>\n\u201cYesterday, a federal court in SDNY [Southern District of New York] entered a Temporary Restraining Order at our request, Burwick Law, supported by Tim Treanor, freezing approximately 57.65 million USDC held at Circle,\u201c Burwick told Cointelegraph.<br \/>\nHe added that the court is scheduled to hold a hearing on June 9 to determine whether the assets will remain frozen as the class-action lawsuit progresses.<br \/>\nBurwick is representing Omar Hurlock and other plaintiffs in a class-action suit against crypto venture firm Kelsier Ventures and its three sibling co-founders, Gideon, Thomas and Hayden Davis, on March 17, alleging they created the Libra (LIBRA) cryptocurrency and misled investors to siphon over $100 million from one-sided liquidity pools.<br \/>\nThe suit also named blockchain infrastructure companies, KIP Protocol and its CEO, Julian Peh, along with Meteora and its co-founder, Benjamin Chow, as defendants.<br \/>\nChow\u2019s lawyer, Kelsier Ventures and KIP Protocol were contacted for comment.\u00a0<br \/>\nLIBRA reached a $4 billion market cap following an X post from Argentine President Javier Milei on Feb. 14 before crashing 94% hours later.<br \/>\nThe saga caused a political scandal for Milei, prompting members of Argentina\u2019s opposition party to call for his impeachment, though little traction was gained beyond those statements.<br \/>\nData from polling platform Zuban C\u00f3rdoba in March suggested that the Libra scandal negatively impacted Milei\u2019s image and the national management approval rating.<br \/>\nTwo Solana wallets with total USDC balances worth $57.65 million were frozen on May 28 at 3:15 am and 3:18 am UTC.<br \/>\nData from Solana\u2019s blockchain explorer, Solscan, shows that the\u00a0address\u00a0\u201c3Fwr\u2026ZQpK\u201d had $44.59 million worth of the stablecoin frozen, while a little over $13 million was frozen from the wallet\u00a0address\u00a0\u201c3nHw\u2026xNgH.\u201d<br \/>\nBoth wallets were frozen by the Multisig Freeze Authority, Solscan data shows.<br \/>\nMilei closes Libra investigation in Argentina<br \/>\nOn May 19, Milei signed a decree to shut down a task force established to investigate the Libra scandal.<br \/>\nRelated: Solana may be a memecoin \u2018one-trick pony\u2019 \u2014 Standard Chartered<br \/>\nNo action was taken against Milei or any other Argentine official allegedly tied to the scandal.<br \/>\nHowever, some critics say a legitimate investigation wasn\u2019t properly conducted in the first place.<br \/>\n\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 Itai Hagman, an economist and member of the Chamber of Deputies of Argentina, said in a May 20 X post.<br \/>\nMagazine: Memecoins are ded \u2014 But Solana \u2018100x better\u2019 despite revenue plunge<a href=\"https:\/\/cointelegraph.com\/news\/us-court-freezes-57-million-libra-memecoin-case?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsA US federal court has frozen around $57.65 million worth of the stablecoin USDC in a class action case over the controversial Libra memecoin. Onchain data shared with&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/130195"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=130195"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/130195\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=130195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=130195"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=130195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}