- Choose Rochon unfroze $57.6M in USDC tied to the Libra meme coin case, citing lack of proof for “irreparable hurt.”
- Plaintiffs accuse Hayden Davis and Ben Chow of deceptive buyers with Libra’s promotion by Argentina’s President Milei, however the decide is “skeptical” they’ll win.
- Libra briefly hit a $1.17B valuation earlier than crashing 97% in 24 hours, sparking lawsuits, resignations, and political fallout.
A Manhattan decide has lifted the freeze on $57.6 million in USDC linked to the notorious Libra meme coin saga—a mission that briefly set the crypto world on hearth again in February earlier than collapsing inside hours. The token, promoted by Argentina’s President Javier Milei as a supposed funding software for small companies, hit a billion-dollar valuation in a single day… solely to crash 97% by the following day.
On Tuesday, U.S. District Choose Jennifer L. Rochon dominated that the funds held in wallets tied to Hayden Davis, CEO of Kelsier Labs, and Ben Chow, founding father of decentralized change Meteora, could possibly be launched. The decide famous that each males had complied with courtroom orders and didn’t look like performing like “evasive actors.” She added that the plaintiffs hadn’t proven proof of “irreparable hurt,” making continued asset freezes pointless.
Plaintiffs Face Skepticism
The $57.6 million was initially frozen in June, after plaintiffs accused Davis and Chow of deceptive buyers by selling Libra by means of Milei’s social media submit. That endorsement gave the coin an aura of legitimacy, and lots of retail merchants mistook it for Argentina’s official token. Choose Rochon, nevertheless, signaled doubt in regards to the case’s power, brazenly admitting she’s “skeptical” the plaintiffs will in the end succeed.
Protection attorneys had been fast to say victory. “This case is meritless,” mentioned Mazin Sbaiti, Davis’s lead counsel. Chow’s lawyer echoed the sentiment, calling the allegations “untested and meritless” whereas making ready a movement to dismiss. Burwick Legislation, which represents the plaintiffs, has but to remark.
Fallout From the Libra Collapse
The collapse of Libra left scorched-earth penalties. The token skyrocketed to a $1.17 billion market cap earlier than cratering to simply $33 million inside a single day, in response to DEX Screener. Allegations of insider buying and selling unfold after Milei deleted his promotional submit, whereas Davis tried to salvage his fame by claiming he acted solely as custodian of funds. That clarification did little to chill investor anger, with many holding Davis instantly answerable for the collapse.
Chow, in the meantime, was dragged into the mess after on-chain analytics revealed pockets connections between Libra and different controversial launches—together with Melania Trump’s meme coin, which additionally ran on Meteora’s infrastructure. Underneath stress, Chow resigned from Meteora after his pseudonymous co-founder accused him of exhibiting “a scarcity of judgment” in trusting Davis.
Politics, Meme Cash, and Chaos
The Libra saga performed out towards an already weird backdrop. Across the identical time, the Central African Republic unveiled its personal “nationwide meme coin,” and the U.S. President even launched an official meme coin simply earlier than his inauguration. Towards this chaotic context, it’s not surprising that many merchants assumed Libra was Argentina’s official digital token.
However six months later, the scandal has cooled. President Milei even dissolved the duty pressure that was supposed to research his position in selling the coin. Now, with the $57.6M in USDC unfrozen, Davis and Chow are a step nearer to clearing their names—even when the broader fallout of the meme coin mania nonetheless lingers.