A US federal court has frozen USDC stubcoins worth approximately $57.65 million in relation to a class action lawsuit relating to the Libra token fraud that took place several months ago.

On May 28, 2025, the US District Court for the Southern District of New York issued a temporary restraining order that freed assets. The amount will remain frozen until June 9th, when a hearing is scheduled to be determined to determine whether the freeze is valid while the lawsuit progresses.

Circle’s Multisignature Authority has frozen two Solana Wallets in connection with the Libra Deplayer and Project team as part of an ongoing lawsuit filed by New York-based law firm Burwick.

As part of the lawsuit, numerous Libra investors are suing cryptocurrency Kercia Ventures along with co-founders Gideon, Thomas and Hayden Davis.

Alert: $57 million USDC related to Circle-frozen Libra

The two Libra accounts have just been frozen in a circle containing the Libra Deployer Wallet.

These accounts include a total of $57 million in USDC, but are now still in motion. pic.twitter.com/hpmam5hwvj

– Arkham (@arkham) May 28, 2025

Other defendants in this case include Benjamin Chow, co-founder of Meteora, a Solana-based Defi platform. Julian Peh, the KIP protocol, is a decentralized AI framework focusing on digital property rights. Other organizations involved in the marketing of Libra tokens.

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The background of the lawsuit

Libra Memecoin attracted attention after Argentine President Javier Milei posted on X on February 14, 2025. The token was advertised as a way to fund small and medium-sized businesses in Argentine.

Within an hour of Milei’s ads on X, the value of Libra Token surged from a few cents to $5, and its market capitalization surged to $4 billion.

Reportedly, insiders controlling more than 70% of the supply were dumped in large quantities, and the value of the Libra token spiraled downwards.

This sparked political rage in Argentina, with opposition members sought Mairay’s blast each. The movement failed to gain momentum, but a poll conducted by Zuban Cordoba in March 2025 suggested that the scandal had harmed Mairay’s approval rating and public image.

Berwick filed a lawsuit on March 17, 2025, when the defendant launched Libra cryptocurrency, deceived investors, and eventually diverted more than $150 million, with investors losing more than $250 million.

Solana’s blockchain explorer, Solscan, has revealed data showing that the authorities freeze at the address 3FWR…ZQPK with a steady property of approximately $44.59 million.

The freeze on assets indicates that US courts are ready to step in to reduce further losses and ensure potential compensation for victims. If successful, this case can set new precedents, hold the founders and promoters of the code to blame investors for misleading investors and fuel the speculative hype cycle.

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Milei closes Libra token investigation

On May 19, 2025, Mairay signed a law to disband the Investigation Task Force investigating the Libra scandal. In particular, the authorities have not filed any charges against Milei or any other Argentinean officials related to the controversy.

“It’s always been fake and they have never dared to investigate anything,” said Itai Hagman, a member of the Argentine agent.

So far, the only explanation provided by the authorities to disband the task force is meeting the assigned functions.

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