- Judge Rochon unfroze $57.6M in USDC tied to the Libra meme coin case, citing lack of evidence for “irreparable harm.”
- Plaintiffs accuse Hayden Davis and Ben Chow of misleading investors with Libra’s promotion by Argentina’s President Milei, but the judge is “skeptical” they’ll win.
- Libra briefly hit a $1.17B valuation before crashing 97% in 24 hours, sparking lawsuits, resignations, and political fallout.
A Manhattan judge has lifted the freeze on $57.6 million in USDC linked to the infamous Libra meme coin saga—a project that briefly set the crypto world on fire back in February before collapsing within hours. The token, promoted by Argentina’s President Javier Milei as a supposed funding tool for small businesses, hit a billion-dollar valuation overnight… only to crash 97% by the next day.
On Tuesday, U.S. District Judge Jennifer L. Rochon ruled that the funds held in wallets tied to Hayden Davis, CEO of Kelsier Labs, and Ben Chow, founder of decentralized exchange Meteora, could be released. The judge noted that both men had complied with court orders and didn’t appear to be acting like “evasive actors.” She added that the plaintiffs hadn’t shown evidence of “irreparable harm,” making continued asset freezes unnecessary.
Plaintiffs Face Skepticism
The $57.6 million was originally frozen in June, after plaintiffs accused Davis and Chow of misleading investors by promoting Libra through Milei’s social media post. That endorsement gave the coin an aura of legitimacy, and many retail traders mistook it for Argentina’s official token. Judge Rochon, however, signaled doubt about the case’s strength, openly admitting she’s “skeptical” the plaintiffs will ultimately succeed.
Defense attorneys were quick to claim victory. “This case is meritless,” said Mazin Sbaiti, Davis’s lead counsel. Chow’s lawyer echoed the sentiment, calling the allegations “untested and meritless” while preparing a motion to dismiss. Burwick Law, which represents the plaintiffs, has yet to comment.
Fallout From the Libra Collapse
The collapse of Libra left scorched-earth consequences. The token skyrocketed to a $1.17 billion market cap before cratering to just $33 million within a single day, according to DEX Screener. Allegations of insider trading spread after Milei deleted his promotional post, while Davis tried to salvage his reputation by claiming he acted only as custodian of funds. That explanation did little to cool investor anger, with many holding Davis directly responsible for the collapse.
Chow, meanwhile, was dragged into the mess after on-chain analytics revealed wallet connections between Libra and other controversial launches—including Melania Trump’s meme coin, which also ran on Meteora’s infrastructure. Under pressure, Chow resigned from Meteora after his pseudonymous co-founder accused him of showing “a lack of judgment” in trusting Davis.
Politics, Meme Coins, and Chaos
The Libra saga played out against an already bizarre backdrop. Around the same time, the Central African Republic unveiled its own “national meme coin,” and the U.S. President even released an official meme coin just before his inauguration. Against this chaotic context, it’s not shocking that many traders assumed Libra was Argentina’s official digital token.
But six months later, the scandal has cooled. President Milei even dissolved the task force that was supposed to investigate his role in promoting the coin. Now, with the $57.6M in USDC unfrozen, Davis and Chow are a step closer to clearing their names—even if the broader fallout of the meme coin mania still lingers.
