- A U.S. judge released $57.6 million in USDC stablecoins connected to the Libra token case.
- The funds were previously frozen in a class-action lawsuit involving memecoin promoter Hayden Davis and ex-Meteora Exchange CEO Ben Chow.
- The court determined victims could still be compensated, so the freeze was lifted.
- The Libra token collapse involved major losses, political scrutiny of Argentina’s President, and investor lawsuits.
- The investigation into President Milei’s role ended with no charges or findings against his office.
A U.S. district judge has released $57.6 million in the USDC stablecoin, which had been frozen in connection to the February collapse of the Libra token. The decision grants access to these funds for Hayden Davis, a memecoin promoter, and Ben Chow, former CEO of the Meteora decentralized exchange.
Judge Jennifer L. Rochon had originally frozen the assets in May during a class-action lawsuit against Davis, Chow, blockchain firm KIP Protocol, and KIP’s co-founder Julian Peh. According to Law360, the judge said the defendants did not prove “irreparable” harm, as the funds remained available to repay victims and no effort had been made to move the assets.
Earlier, Davis had tried to dismiss the lawsuit, but the court denied the motion as “moot.” Judge Rochon noted, however, that she was doubtful the lawsuit would succeed against Davis, Chow, and others.
The Libra token’s launch in February aimed to support small businesses in Argentina and was first promoted by President Javier Milei on social media. The token’s value collapsed within hours, with reports of a $107 million loss, referred to as a “rug pull,” which is a scheme where project organizers abruptly withdraw investor funds.
President Milei denied any knowledge of the project’s details and distanced himself after the collapse. “A few hours ago, I posted a tweet, like so many other countless times, supporting a supposed private venture with which I obviously have no connection,” Milei said in a February 14 post on X (formerly Twitter).
Despite this, congressional investigations focused on possible ethics violations and impeachment calls against Milei. The president later closed the probe, and no charges or wrongdoing were found involving his office. Some critics claimed the closure was politically motivated.
The Libra token case continues to draw legal and regulatory attention in the cryptocurrency world.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Popular Password Manager Extensions Vulnerable to Clickjacking Attacks
- Tesla Stock Slides as SpaceX Setbacks Stir Investor Concerns
- UK Sanctions Russian Crypto Networks, Kyrgyz Bank Over Evasion
- Chainlink’s LINK Surges 8% as Crypto Recovers, Outperforming BTC
- Radix Season 0 Rewards Act as Bonus, Unlocked by Season 1 Activity
