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US Court Freezes $57 Million USDC in Libra Memecoin Case
A U.S. federal court has put a hold on approximately $57.65 million in USDC stablecoin assets within a class-action lawsuit related to the controversial Libra memecoin. On May 28, nearly $57 million worth of USDC was frozen after a Manhattan court issued a temporary restraining order at the request of an attorney, Max Burwick. The upcoming hearing on June 9 will decide the permanence of the freeze as the case advances. Burwick is representing plaintiffs including Omar Hurlock, accusing crypto venture firm Kelsier Ventures and high-profile individuals of creating the Libra coin and misleading investors to defraud over $100 million from liquidity pools. The lawsuit also implicates other blockchain firms including KIP Protocol and Meteora. The Libra token, which surged to a $4 billion valuation following Argentine President Javier Milei’s support, plummeted 94%. This scandal damaged Milei's reputation and sparked political controversy in Argentina. The frozen assets are held in two Solana wallets with notable balances in USDC. Despite the legal actions, no formal investigation has been pursued against Milei or Argentine officials linked to the scandal.
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AI Analysis
The temporary freeze on $57 million USDC highlights ongoing legal challenges surrounding the Libra memecoin scandal. The lawsuit, initiated by plaintiffs alleging fraudulent creation and misleading in...
AI Recommendation
Investors should exercise caution and avoid speculative positions in tokens associated with controversial projects like Libra until clarity and regulatory guidance are established. The legal freezing ...
Disclaimer
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