Circle Freezes $58M in USDC from LIBRA Team After Court Ruling

Following a U.S. court order, Circle froze nearly $58 million in two accounts connected to the LIBRA memecoin, previously referenced by Argentinian President Javier Milei. Solana explorer data shows that one of the frozen accounts holds over $44.5 million in USDC, and the other over $13 million.

Class Action Lawsuit Over LIBRA Memecoin Advances in the U.S.

Burwick Law, representing LIBRA token investors in the class action lawsuit, announced on May 28 that the case is moving forward in the Southern District of New York. The lawsuit names Kalsier Ventures founders and executives Hayden Davis, CT Davis, and Gideon Davis, as well as Meteora exchange co-founder Ben Chow and KIP Protocol’s Julian Peh.

It remains unclear whether the account freeze was ordered at Burwick’s request. Argentinian lawyer Martin Romeo commented on an X post, claiming that his team requested the freeze two months ago. However, Burwick responded that more context will become available once the court order is made public.

The subject of the lawsuit, the LIBRA memecoin, was launched in February 2025. Its value skyrocketed after Argentinian President Javier Milei posted about the token on his X account. However, LIBRA later lost around 90% of its value, resulting in major investment losses, political debates, and investigations.

Argentina’s LIBRA Investigation Task Force Has Been Shut Down

Earlier this month, Argentine President Javier Milei officially disbanded the government task force investigating the $LIBRA memecoin scandal. Created in February 2025 after Milei posted about $LIBRA on social media, the task force was dissolved on May 19 through a decree signed by Milei and Justice Minister Mariano Cúneo Libarona.

Although the official explanation cites the completion of its mission, the case could resurface through court rulings and political pressure. Critics argue the task force’s quiet shutdown, without any public findings, is an attempt to avoid accountability. Opposition parties are now calling for a parliamentary inquiry, and judicial investigations into Milei and his associates are still ongoing.

The Argentine investigation may have prompted international cooperation, leading to the U.S.-based asset freeze, though Milei himself is not directly named in the U.S. court action.