A U.S. judge has unblocked $57.6 million in USDC stablecoins related to the February Libra token incident. Meme coin promoter Hayden Davis and former CEO of the decentralized exchange Meteora, Ben Chow, have gained access to these funds.
U.S. Judge Jennifer L. Rochon froze the funds in May as part of a class-action lawsuit trial against Davis, Chow, blockchain infrastructure company KIP Protocol, and KIP co-founder Julian Peh.
According to Law360, the judge stated that the defendants failed to demonstrate the existence of "irreparable" harm. Since the funds to compensate the victims are still available, and the defendants did not attempt to transfer the frozen funds.
In July, Davis filed a motion to dismiss the case, but the court rejected it on the grounds of "lack of practical significance." Nevertheless, Judge Rochon expressed skepticism about the likelihood of success for the class action against Davis, Chow, and others.
The Libra token incident is considered one of the most significant rug pull events in history, involving Argentine President Javier Milei, which triggered an ethical investigation and a collective lawsuit from investors.
The Libra token was launched in February, with the project claiming to support small and micro enterprises in Argentina. Milei initially promoted it on social media.
The Libra token collapsed just hours after its launch, being regarded as a rug pull incident involving $107 million, leading to strong reactions from affected investors.
Milei subsequently distanced himself from the token, denying knowledge of the project's fundamentals and retracting his previous promotional content.
"Just a few hours ago, I tweeted, as I have many times, in support of a so-called private project, clearly I have no connection to it," Milei stated on February 14 on the X platform (formerly Twitter).
This statement did not prevent Congress from investigating potential ethical violations by Milei, and calls for his impeachment from Argentine lawmakers did not subside.
However, Milei closed the investigation and disbanded the working group. Since the presidential office has not been accused or verified of any wrongdoing, some have accused this action of being a politically motivated cover-up.
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Original article: “Judge Unfreezes Over $57M Stablecoins Linked to Libra Token Scandal”
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