A US federal judge has unfrozen $57.6 million in USDC stablecoins linked to the infamous LIBRA memecoin scandal, granting access to promoters Hayden Davis and Ben Chow. Judge Jennifer L. Rochon of the Southern District of New York lifted the freeze imposed in May, stating defendants failed to demonstrate "irreparable harm" as victim reimbursement funds remain available and no attempts were made to move the assets.
The decision comes amid a class-action lawsuit alleging a $107 million rug pull involving the LIBRA token, which collapsed hours after its February launch. The project was initially promoted by Argentine President Javier Milei, who later distanced himself, claiming no connection. Despite congressional ethics investigations and impeachment calls, Milei dissolved the task force without charges, fueling allegations of a cover-up.
Following the ruling, LIBRA's price briefly spiked before crashing again, reflecting market volatility and community cynicism. Judge Rochon expressed doubt about the lawsuit's success, noting Davis's motion to dismiss was denied as "moot" in July. The case has drawn comparisons to recent crypto legal outcomes, with critics decrying perceived judicial inconsistency.