Judge orders to defrost USD $ 57 million in tokens associated with the pound scandal

By Hannah Pérez

A court in New York had ordered to freeze millions in USDC of two wallets associated with the Libra advisor, Hayden Davis. Now, the judge in charge has decided to reverse that measure giving access to those tokens.

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• New turn in the Libra scandal, which caused political stir in Argentina.
• Judge in New York defrices millions in USDC associated with the promoter, Hayden Davis.
• It had ordered to block those tokens as part of a collective demand.
• The judge expressed skepticism about the chances of success of that lawsuit.

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In the last turn related to the Token Libra scandal –where Argentine president himself, Javier Milei, was involved at the beginning of the year–a judge in the United States has ordered to defrost a fortune in related cryptocurrencies.

The Federal Judge of Manhattan, Jennifer L. Rochon, decided on Tuesday to raise a temporary restriction order issued in June, which froze the accused assets of the accused in a collective claim related to the Token Libra, reported the media Law360.

According to the report, which was first reviewed by Cointelegraphthe judge denied a precautionary measure requested by the plaintiffs, who were looking for more than USD $ 100 million in damages for losses suffered after the collapse of the project.

In May, two of the wallets linked to the scandal containing around USD $ 57 million in USDC, were frozen by the station of that Stablecoin Circle in response to an order of the federal court in New York.

That decision, which disabled access to funds, was the result of a hearing in a Collective claim against the advisor and promoter of Libra, Hayden Davisthe former executive director of the decentralized exchange MeteoraBen Chow, the infrastructure company Blockchain, Kip protocol, and his co -founder, Julian Peh.

In her decision this week, Judge Rochon argued that there was no immediate risk that the defendants dispel the assets, so it was not justified to maintain freezing. Besides, Expressed skepticism about the chances of success of collective demand, although he pointed out that the case is still at an early stage.

Defrosting now allows Davis and Chow to access the USD $ 57.6 million again in USDC deposited in both wallets.

The Libra scandal in Argentina

The Token Libra, launched in February 2025, was promoted by Javier Milei as a project that intended to support small Argentine companies. However, it collapsed during hours, losing more than 90% of its value, with a market capitalization that went from USD $ 1.17 billion to USD $ 33 million, according to data from Dex Screener.

The incident triggered accusations of a “ring rug” or carpet pull of USD $ 107 million, where it was said that internal people with privileged information sold massively behind the peak.

Milei initially promoted the Token in X, but then deleted the publication and said he had no direct connection with the project, saying that only “He spread the word“On a private initiative. This did not avoid an investigation of the Argentine Congress for possible ethical violations, although the Milei government closed the investigation without charges, which generated accusations of cover -up.

The Anti -Corruption Office of Argentine (OA) said in June that President Milei was acting in a personal capacity when he promoted the Libra cryptocurrency, weeks after the government made the decision to close the state unit that was in charge of investigating the case of Libra, thus putting end to government investigation.

Last month, Davis tried to dismiss the lawsuit against him, but the motion was rejected as without procedural relevance. Collective demand, filed by law firm Burwick Law and Treanor Lawcontinues, looking for compensation for investor losses. In addition to that lawsuit, an investigation by a Federal Criminal Court in Argentina is still ongoing.

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Article written with the help of AI, edited by Diariobitcoin

Image generated with AI tool, under free use license

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