Judge unfreezes 57.6 million USD USDC! Libra Token scandal stirs up waves again, involving the Argentine president and a Whale.

A U.S. federal judge recently approved the unfreezing of $57.6 million in USDC stablecoins related to the Libra Token scandal, allowing meme coin initiator Hayden Davis and former DEX CEO Ben Chow to regain control of the funds. This cryptocurrency fraud case, which erupted in February, is seen as one of the most controversial "rug pull" actions in history, even involving Argentine President Javier Milei, drawing ongoing attention from global investors and the political arena.

Judge Approves Fund Release, Case Enters New Phase

According to Law360, U.S. Judge Jennifer L. Rochon approved the unfreezing of $57.6 million USDC that was previously frozen in May. This fund is directly related to the Libra Token fraud case, where the freeze order targeted Hayden Davis, Ben Chow, the blockchain infrastructure company KIP Protocol, and its co-founder Julian Peh.

The judge pointed out that the defendant failed to prove that freezing the funds would cause "irreparable harm," as the compensation funds for the victims are still available, and there is no evidence that the defendant attempted to transfer the funds. Although the court dismissed the motion to withdraw filed by Davis in July, the judge also expressed doubts about whether the class action lawsuit could ultimately be established.

Libra Token Scandal: From 'Supporting Small Businesses' to a $107 Million Collapse

The Libra Token was launched in February this year, claiming its purpose is to support small businesses in Argentina, and it was promoted by President Javier Milei on social media. However, the token crashed within hours of going online, causing investor losses of up to 107 million USD, and was described by outsiders as a massive "Rug Pull" operation.

After the incident broke out, Milei quickly distanced himself from the project, claiming that he was not aware of the actual operations of Libra, and deleted related tweets. However, this did not prevent the Argentine Congress from launching a moral investigation against him, and there were even calls for impeachment at one point.

Controversies Intertwined with Politics and Law

In a statement on February 14, Milei stated that he was merely "retweeting a private company's tweet as usual" and denied any association with the project. Ultimately, the Argentine government ended the investigation and disbanded the working group, without making any accusations against the presidential office. This move raised questions from the outside, suggesting that there may be political motives to cover up the facts.

At the same time, the class action lawsuit in the United States is still ongoing, involving several well-known figures and institutions in the Crypto Assets space, and it may have a profound impact on the regulatory trends in the meme coin sector.

Impact on the encryption market and investor confidence

The Libra scandal is not only a massive crypto fraud case, but it also exposes the vulnerability of the memecoin and high-risk token markets once again. Analysts point out that while the judge's unfreezing of funds may provide short-term relief for some defendants, the blow to investor confidence continues.

Keywords such as "crypto assets fraud cases," "USDC fund unfreezing," and "meme coin rug pulls" have surged in popularity on social media, indicating that the market's attention to this case remains extremely high.

Conclusion

From the thawing of 57.6 million USDC to an investment loss of 107 million, the Libra Token scandal has become one of the most controversial events in the crypto market of 2025. Regardless of the final legal outcome, this case will serve as an important example in discussions on cryptocurrency regulation and investor protection. For more real-time news and on-chain data analysis, please follow the official Gate platform.