Circle has reportedly frozen $57.65 million in USDC tied to the Libra memecoin. Argentine President Javier Milei’s promotion of the token sparked a political firestorm after its value crashed.
The U.S. District Court in New York recently ordered the freeze following Burwick Law’s request. A hearing is scheduled for June 9 to decide the funds’ fate.
Circle Follows Order to Freeze $57M Wallet
Circle, the issuer of the USDC stablecoin, implemented a significant action today by freezing two Solana wallets. These wallets contain substantial amounts of funds, specifically $44.59 million and $13 million, respectively. This decision came in response to a temporary restraining order issued by the Southern District of New York.
On February 14, 2025, President Milei posted on X, endorsing the Solana-based Libra meme coin to boost Argentina’s economy. The token’s value surged from nearly nothing to $5.20, reaching a $4.6 billion market cap in minutes. Insiders, holding 70% of the supply, sold off, crashing the price by 85% to $0.99.
Over 74,000 investors lost $250 million, prompting fraud allegations and calls for Milei’s impeachment. Burwick Law filed a class-action lawsuit against Kelsier Ventures and others, leading to the court-ordered freeze.
Memecoin Rugpulls Soar
The Libra crypto, which has experienced notable fluctuations, currently boasts a market capitalization of approximately $162 million. This figure reflects the broader volatility often associated with memecoins, which are known for their rapid price swings and speculative trading behavior.
Some recent celebrity-backed tokens have reportedly followed a pattern of pump-and-dump schemes or have failed to reach required regulatory targets, with investors’ funds either lost or refunded. For example, REAL, which presale did not reach its goal of raising $ 1 million, but raised only $392,315 in USDC during a 28-hour auction. The developers of the token promised to refund all investors who placed bids in the auction.
The U.S. District Court will hold a hearing on June 9 to decide whether to unfreeze the $57.65 million in USDC. The ruling may affect ongoing lawsuits and investor recovery efforts in the Libra scandal and set a precedent for crypto fraud cases.
