On May 28, 2025, a US federal court froze around $57.65 million worth of the stablecoin USDC in a class – action case related to the controversial LIBRA meme coin.
Background of the LIBRA Scandal
The LIBRA scandal originated when Argentine President Javier Milei promoted the LIBRA meme coin on his personal social media account, claiming it was a “private project” aimed at stimulating the economic growth of Argentina by providing funds for small – scale enterprises and entrepreneurs. However, the value of the project plummeted by 90% shortly after its brief surge, and it was labeled as a “rug pull” scam by the industry. Investors suffered losses of at least $250 million. Milei initially defended his promotion of LIBRA but later claimed to know nothing about the project’s details, deleting social media posts and attempting to downplay his role in the scandal.
Details of the USDC Freeze
The on – chain data shared by the class – group’s lawyer, Max Burwick, shows that nearly $57 million worth of USDC was frozen on May 28 after a Manhattan court agreed to a temporary freeze. 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. Burwick is representing Omar Hurlock and other plaintiffs in a class – action suit against crypto venture firm Kelsier Ventures and its three sibling co – founders, alleging that they created the LIBRA cryptocurrency and misled investors to siphon over $100 million from one – sided liquidity pools. The suit also names blockchain infrastructure companies and their executives as defendants.
Two Solana wallets with total USDC balances worth $57.65 million were frozen at 3:15 am and 3:18 am UTC on May 28. Data from Solana’s blockchain explorer shows that the address “3fwr…zqpk” had $44.59 million worth of the stablecoin frozen, while a little over $13 million was frozen from the wallet address “3nhw…xngh”. Both wallets were frozen by the multisig freeze authority.
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