US Court Unblocks $57 Million in USDC in Libra Lawsuit

A U.S. federal judge has unfrozen more than $57 million in USDC tied to the Libra token scandal investigation. The assets were held in two wallets linked to memecoin promoter Hayden Davis and former Meteora CEO Ben Chow.

The funds were frozen in May as part of a class action lawsuit in which investors sought more than $100 million in damages related to the Libra collapse.

Now, Judge Jennifer L. Rochon has ruled that Davis and Chow will no longer attempt to illegally move assets. The judge said they followed the rules set forth in the case and did not attempt to move or hide the funds while they were frozen.

It is obvious that these funds can be used to compensate for damages. The plaintiffs have not proven the existence of irreparable damage that could serve as a basis for maintaining the moratorium, the court said in a statement.

Rochon noted that the defendants had not evaded taxes, which she said played a key role in her decision to unfreeze the assets.

At the same time, the judge made it clear that the case was in its early stages. She expressed doubt that the class action would ultimately succeed, but stopped short of dismissing it outright.

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