tl;dr
USDC accounts linked to the Libra meme coin team and token deployer were frozen by Circle, locking nearly $58 million in stablecoins on Solana. The freeze followed a temporary restraining order issued by a federal court in SDNY at the request of crypto law firm Burwick Law, supported by Argentina’s ...
$57 million in USDC stablecoins linked to the Libra meme coin team and token deployer were frozen by Circle, immobilizing assets on the Solana blockchain amid ongoing legal action.
The freeze follows a temporary restraining order filed by Burwick Law and supported by Argentina’s justice department in a class-action suit related to the Libra token scandal.
The Solana-based Libra token, heavily promoted by Argentine President Javier Milei, surged then collapsed nearly 90%, sparking allegations of a pump-and-dump scheme.
President Milei faces fraud charges, and despite a government task force’s recent dissolution, investigations into the Libra token scandal continue.
Circle, which controls USDC issuance and blacklisting, simultaneously filed for a $6.7 billion IPO on the New York Stock Exchange.
USDC accounts linked to the Libra meme coin team and token deployer were frozen by Circle, locking nearly $58 million in stablecoins on Solana. The freeze followed a temporary restraining order issued by a federal court in SDNY at the request of crypto law firm Burwick Law, supported by Argentina’s justice department amid ongoing litigation related to the Libra token scandal.
The Solana-based Libra token, promoted by Argentine President Javier Milei, soared to a multi-billion-dollar market cap before crashing 90%, triggering fraud charges against Milei and accusations of a pump-and-dump scheme.
Circle, which controls USDC issuance, can freeze tokens per its policy. The freeze coincides with Circle's IPO filing targeting a $6.7 billion valuation.
The Libra meme coin scandal, which rocked the cryptocurrency market and global politics earlier this year due to its association with Argentine President Javier Milei, has taken another turn.
USDC accounts belonging to two wallets tied to the Libra meme coin team and token deployer were frozen on Tuesday, locking up nearly $58 million worth of stablecoins on Solana that can no longer be sold or transferred.
The accounts, tagged as frozen on Solana block explorer Solscan, maintain $44.59 million and $13.06 million in USDC, a stablecoin issued by Circle that is pegged to the value of the U.S. dollar.
Because USDC stablecoin’s minting and issuance is controlled by Circle, the firm is able to freeze or “blacklist” tokens according to its blacklisting policy.
Major stablecoin issuers like Circle and Tether have previously blacklisted addresses connected to major exploits, such as the $1.4 billion hack of Bybit in February.
The exact requester of the freeze remains unclear, with multiple parties including Burwick Law and Argentina’s justice department claiming credit.
Burwick Law stated the freeze is due to a temporary restraining order issued at its request, while Martin Romeo, a plaintiff in the Argentinian case related to the Libra token, attributed the freeze to Argentina’s justice department.
Burwick confirmed, “A federal court in SDNY entered a temporary restraining order at our request, freezing approximately 57.65 million USDC held at Circle, now visible on Solscan.” A preliminary injunction hearing is scheduled for June 9, 2025 to maintain the asset freeze during ongoing litigation.
Burwick previously filed a class-action suit against Kelsier Ventures and Meteora, including named executives, for their roles in the Libra token scandal.
The Libra token, launched on Solana and promoted by President Milei on social media, quickly reached a multi-billion-dollar market cap before dropping nearly 90%, amid accusations of a pump-and-dump as associated wallets cashed out profits.
President Milei was subsequently charged with fraud, and though a government task force was established to investigate, it was recently dissolved.
Concurrently, Circle filed for its initial public offering (IPO) on the New York Stock Exchange, targeting a $6.7 billion valuation.