Circle freezes 57M USDC linked to LIBRA memecoin scandal

Nearly $ 58 million in USDC were frozen as part of the Memecoin balance scandal, deepening the legal and political benefits of one of the biggest cryptography scandals this year.

On May 29, the analysis company of the Arkham blockchain reported that Circle, the USD Coin (USDC), frozen two Solana (GROUND) Portfolios linked to the balance of balance and the project team. The portfolios held $ 57.65 million in USDC, which is now motionless. The action was carried out by the multisig freezing authority of Circle.

Gel is part of an in progress action trial Posed in March in the South New York district. Hundreds of Balance investors continue Kelers Ventures, a cryptocurrency venture capital company and its co-founders, Gideon, Thomas and Hayden Davis. The trial was filed by the law firm based in New York Burwick.

Benjamin Chow, co-founder of Meteora, Julian Peh of the KIP protocol, and other organizations allegedly involved in the development and marketing of the balance token are among the other defendants.

The balanced token quickly gained popularity after its launch of February 2025 with the help of the promotion of the social media of the Argentinian president Javier Milei. It was announced as a way to finance small businesses in Argentina. In less than an hour, the value of the token went from a few hundred to more than $ 5, and its market value exceeded $ 4 billion.

However, the initiates who supposedly checked 70% of the offer spilled significant amounts in a few hours, sending the price of more than 90%. The initiates would have earned more than $ 150 million, while investors have lost more than $ 250 million.

The scandal triggered outrageous in Argentina. The calls for dismissal followed the dismissal by President Milei of his posts and the refusal of any involvement. A government working group was created to examine the issue, but Milei dissolved He on May 19.

Assets freeze that US courts may be ready to take immediate measures to prevent new losses and guarantee potential compensation for victims. If the case succeeds, it could establish a precedent to hold the founders and promoters of Crypto responsible for the deception of the public and the exploitation of the media threshing cycles.