Circle Freeza USD $ 58 million in USDC associated with the Libra scandal in Argentina

By Hannah Pérez

Millions of dollars in USDC have been frozen in relation to the memecoin Libra, promoted by the Argentine president, Javier Milei. The last twist of the crypto scandal that shook the Argentine politics.

***

• Millions of dollars in USDC frozen in relation to the memecoin Libra.
• Token Meme caught attention and shook Argentine politics after the promotion of Milei.
• It is unknown why Circle blocked the funds, but apparently responds to a request for justice.
• The last twist in the Milei cryptocurrency scandal.

---

The case of Libra cryptocurrency, which shook Argentine politics at the beginning of the year, has taken a new turn.

The Stablecoins issuer Circle It has frozen wallet addresses with approximately USD $ 58 million in USDC, allegedly associated with the Libra scandal, according to the analysis firm Blockchain, Arkham Intelligence.

The unknown memecoin libra, based on Solariumwon generalized attention at the beginning of the year following the public promotion of the Argentine President, Javier Milei, in social networks, a temporary support that initially fed his meteoric ascent but was finally followed by a loud collapse in his value.

In mid -February, Milei used its social networks to promote the then unknown Cryptocurrency Libra, stating that it had the potential to boost the Argentine economy financing small local businesses. The price of Token He shot at first a market limit of USD $ 4 billion before erasing all profits.

Milei soon distanced himself from the project and denied any responsibility, including having earned money or having detailed knowledge. Since then, he has faced accusations of irregularities, with critics by stating that Libra was a “carpet pull.”

Hayden Davis, CEO of Kelsier Ventures and the alleged advisor of Token Libra, said later that he had paid the president’s sister, Karina Milei, to influence the Argentine leader to publicly support the project. A month earlier, Davis had met Milei at Casa Rosada, according to Milei himself at that time in his social networks.

Millions of USDC frozen in relation to Libra

In a new nut rotation in the case, analysts of Arkham They noticed on Wednesday two frozen USDC wallets associated with Libra, one containing USD $ 44.59 million in the Stablecoin and another with around USD $ 13 million.

Alert: $ 57m of Usdc Associated with Libra Frozen By Circle

TWO LIBRA ACCOULS HAVE JUS BEEN FROZEN BY CIRCLE, INCLUDING THE LIBRA DEPLOYER WALLET.

These accounts containeed to combined $ 57m in usdc which is now immobile. pic.twitter.com/hpmam5hwvj

– Arkham (@arkham) May 28, 2025

Circlewhich emits the Stablecoin Centralized USDC, with parity in US dollar, can restrict tokens transfers during legal investigation, in response to judicial applications or suspicions of important security violations. In this context, “freezing” means restricting or blocking the movement of tokens in certain wallet addresses in the Blockchain.

However, in this case, it is not clear to which request has responded Circle To proceed with the blockade of funds.

Immediately after the scandal, the Argentine authorities began investigations to inquire about LIBRA and their relationship with President Milei. Among the measures, it was reported that a federal judge of Argentina had requested in March the freezing of more than USD $ 100 million in assets linked to cryptocurrency.

Last nut rotation in Milei’s crypto scandal

The law firm focused on cryptocurrencies, Burwick Lawthe responsibility for the freezing of the USDC was awarded on Thursday saying that it responded to a temporary restriction order issued by the legal representatives of the company.

Meanwhile, Martin Romeo, a plaintiff in the Argentine case around Token Libra, said on social networks that the freezing was the result of a request from the Department of Justice of Argentina.

Milei has faced fraud for legal actions presented by local lawyers, in relation to their participation in the project of Memecoinalthough he has systematically denied any crime on his part.

The last twist occurs after the Argentine government headed by Milei made last week the decision of close the state unit that was in charge of investigating the case of Libra and his relationship with the president. A presidential decree was signed and published in the Bulletin, ending the government’s internal investigation into the matter.

Recently, a judge asked the Central Bank of Argentina to revoke the president’s bank secrecy with the aim of reviewing his finances and those of his associates, including his sister. The National Congress continues to investigate the case.

---

Hannah Estefanía Pérez / Diariobitcoin

Image generated with AI, under free use license

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.