The smartphone displays Viva La Libertad Project website. Source: Koshiro K - stock.adobe.com

Key Takeaways:

A U.S. federal court has frozen $57.65M in USDC linked to the LIBRA memecoin scandal, pending a June 9 hearing.
The lawsuit alleges Kelsier Ventures and its founders defrauded investors of over $100M through manipulated liquidity pools.
LIBRA’s brief surge to a $4B market cap followed by a 94% crash sparked political controversy in Argentina involving President Milei.

A U.S. federal court in Manhattan has frozen approximately $57.65 million worth of USDC in connection to a class-action lawsuit involving the LIBRA memecoin scandal.

The assets, held at Circle, were frozen on May 28 following a Temporary Restraining Order supported by on-chain data provided by the plaintiffs’ legal team.

ALERT: $57M OF USDC ASSOCIATED WITH LIBRA FROZEN BY CIRCLE

Two Libra accounts have just been frozen by Circle, including the Libra deployer wallet.

These accounts contained a combined $57M in USDC which is now immobile. pic.twitter.com/HpmaM5HwVJ
— Arkham (@arkham) May 28, 2025

A court hearing on June 9 will decide if the freeze remains in effect.

The lawsuit, filed March 17, targets Kelsier Ventures and its co-founders — Gideon, Thomas, and Hayden Davis — accusing them of misleading investors and using manipulated liquidity pools to extract over $100 million.

Additional defendants include KIP Protocol, Meteora, and executives Julian Peh and Benjamin Chow.

LIBRA briefly spiked to a $4 billion market cap on February 14 after Argentine President Javier Milei mentioned it on X, before crashing 94% within hours.

Although the crash sparked a political backlash in Argentina, impeachment calls against Milei lost momentum.

On May 19, Milei dissolved the investigative task force created in response to the scandal.

The frozen USDC was traced to two Solana wallets, with balances of $44.59 million and $13 million, both locked by the Multisig Freeze Authority.

No legal action has been taken against Milei or related officials.