$58 Million in USDC Frozen Amid Explosive LIBRA Memecoin Scandal

Circle Halts $57.65 Million in Solana Wallets Linked to LIBRA Team

Holy smokes, folks! In a jaw-dropping twist to the LIBRA memecoin saga, a staggering $58 million in USDC has been put on ice, sending shockwaves through the crypto world. This massive freeze is throwing gasoline on the already blazing legal and political firestorm surrounding one of 2025's most outrageous crypto scandals.

Hold onto your hats! On May 29, the blockchain sleuths at Arkham dropped a bombshell, revealing that Circle, the brains behind USD Coin (USDC), had slammed the brakes on two Solana (SOL) wallets connected to the LIBRA deployer and the project team. These wallets were sitting on a cool $57.65 million in USDC, but now? Nada, zip, zilch - completely frozen solid by Circle's multisig freeze authority. Talk about a crypto winter!

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.

This ice-cold move is part of a scorching-hot class-action lawsuit that's been cooking since March in the Southern District of New York. We're talking about hundreds of LIBRA investors taking on Kelsier Ventures, a crypto venture firm, and its co-founders - Gideon, Thomas, and Hayden Davis. The New York-based law firm Burwick is leading the charge.

But wait, there's more! Benjamin Chow, a co-founder of Meteora, Julian Peh of KIP Protocol, and a whole crew of other orgs allegedly involved in cooking up and hyping the LIBRA token are also in the hot seat as defendants.

Let's rewind the tape. The LIBRA token exploded onto the scene in February 2025, thanks to a social media boost from none other than Argentine President Javier Milei. They were selling it as a way to help small businesses in Argentina, but boy, did it go off the rails fast. In less than an hour, the token's value rocketed from pocket change to over $5, with its market value soaring past $4 billion. It was like watching a rocket launch!

But then, kaboom! Insiders, who apparently had their grubby hands on 70% of the supply, pulled a classic rug pull, dumping massive amounts and sending the price crashing down over 90% in a matter of hours. These insiders allegedly pocketed over $150 million while leaving investors nursing losses of more than $250 million. Ouch!

This scandal didn't just shake the crypto world; it caused a political earthquake in Argentina. Calls for President Milei's impeachment started flying after he deleted his posts and tried to wash his hands of the whole mess. A government task force was set up to investigate, but Milei pulled the plug on it on May 19. Talk about a political hot potato!

Now, with this asset freeze, it looks like American courts might be ready to throw down and take swift action to stop the bleeding and make sure victims get a shot at compensation. If this case goes the distance, it could set a new standard for holding crypto founders and promoters accountable for pulling the wool over people's eyes and riding the hype train. Buckle up, folks, because this ride is far from over!