USDC Freeze in LIBRA Scandal: $58 Million Locked Up
Circle, the company behind USD Coin (USDC), has frozen nearly $58 million in two Solana wallets linked to the LIBRA memecoin scandal. This move comes as part of a class-action lawsuit filed in New York.
On May 29, blockchain analytics firm Arkham reported the freeze. The wallets, tied to the LIBRA deployer and project team, held a combined $57.65 million in USDC. Circle used its multisig freeze authority to immobilize the funds.
The lawsuit, filed by New York-based law firm Burwick, involves hundreds of LIBRA investors. Thay are suing Kelsier Ventures and its co-founders, along with other organizations involved in the token’s growth.
LIBRA gained popularity after its February 2025 launch, thanks to Argentine President Javier Milei’s social media promotion. It was marketed as a way to fund small businesses. However, insiders allegedly dumped notable amounts within hours, causing the price to plummet over 90%.
This scandal sparked political outrage in Argentina. President Milei removed his posts and denied involvement.A government task force was established but disbanded in May. The asset freeze suggests American courts may take action to prevent further losses and ensure compensation for victims.
If the case succeeds, it could set a precedent for holding crypto founders and promoters accountable for deceiving the public and exploiting hype cycles.
