Circle Freezes Millions in USDC Tied to Libra Memecoin Scandal

Circle Freezes Millions in USDC Amid Libra Memecoin Controversy

According to Arkham on Wednesday, stablecoin issuer Circle has frozen two wallet accounts that possess approximately $57.6 million in USDC and are connected to the Libra memecoin controversy. The deployer wallet for Libra has around $13 million in USDC, while another locked Libra wallet has $44.59 million, according to screenshots that Arkham shared.

Mystery Deepens: Who Asked Circle to Freeze Millions in Stablecoins?

When there is an emergency or a legal inquiry into a significant security breach, prominent stablecoin issuers like Circle and Tether have the authority to limit token transfers. Who asked Circle to freeze the tokens is unknown, though, and this is a topic of ongoing internet debate.

The temporary restraining order to freeze the wallets was granted by the U.S. District Court for the Southern District of New York, according to Burwick Law, a firm that has been involved with HAWK memecoin and Pump.fun. However, according to Martin Romeo, a plaintiff in the Argentine Libra token lawsuit, he and other plaintiffs applied for the order locally.

From Hype to Fraud Claims: The Rise and Fall of Libra Memecoin

Libra, a memecoin based on Solana, attracted a lot of attention due to its connection to Argentine President Javier Milei. This affiliation spurred the cryptocurrency’s explosive ascent, which was ultimately followed by a decline in value. Milei openly marketed Libra earlier this year as a token designed to support startups and small enterprises in Argentina. On his social media accounts, he even shared a link to the cryptocurrency and its contract address.

After the memecoin’s value plummeted, Milei subsequently retracted his support for the project, claiming he had little in-depth knowledge of it and had no intention of enticing others to invest. Due to his connection with the memecoin, Milei was charged with fraud by local attorneys after the collapse. He has, however, continuously denied any misconduct on his part.

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