USDC unfrozen: A Manhattan federal judge lifted a $57.6M freeze on USDC tied to the LIBRA token, restoring access to Hayden Davis and Ben Chow after finding them compliant with court proceedings and determining plaintiffs had not shown irreparable harm.
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Judge lifts $57.6M USDC freeze tied to LIBRA token in Manhattan federal court.
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Hayden Davis and Ben Chow regained access after being deemed compliant; two wallets still hold $13.06M and $44.59M.
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The LIBRA token peaked at $1.17B market cap then fell 97% to $33M; plaintiffs seek over $100M in damages.
USDC unfrozen: Manhattan judge lifts $57.6M freeze on funds tied to the LIBRA token. Read the ruling summary and next legal steps. Learn more.
What happened when the USDC tied to the LIBRA token was unfrozen?
USDC unfrozen after a Manhattan federal judge lifted a $57.6 million asset freeze linked to the LIBRA token, allowing defendants Hayden Davis and Ben Chow to access funds while the lawsuit proceeds. The court found no sufficient showing of irreparable harm and noted the defendants’ compliance with proceedings.
How did Judge Jennifer L. Rochon justify lifting the freeze?
Judge Jennifer L. Rochon said plaintiffs did not demonstrate irreparable harm. She observed that defendants were not acting as “evasive actors” and that money damages would likely compensate the putative class. The two frozen wallets remain intact, holding $13.06 million and $44.59 million respectively.
Why were Hayden Davis and Ben Chow able to regain access to USDC?
Judge Rochon found both defendants cooperative and not attempting to evade the court. Plaintiffs failed to prove irreparable harm. The court emphasized that money damages could compensate any alleged losses, reducing the need for a continued freeze at this stage.
What are the central claims in the LIBRA token lawsuit?
Plaintiffs allege Davis and Chow misled investors by promoting the Solana meme token LIBRA and using a social media post by Argentine President Javier Milei to imply legitimacy. Plaintiffs seek more than $100 million in damages, claiming investor losses after a rapid market collapse.
Frequently Asked Questions
How much did LIBRA fall after launch?
LIBRA reportedly peaked at a $1.17 billion market capitalization and dropped about 97% to roughly $33 million within 24 hours, according to on-chain market data referenced in filings.
Who represents the defendants and plaintiffs?
Hayden Davis’s counsel includes Mazin Sbaiti of Sbaiti & Company PLLC. Plaintiffs are represented by Burwick Law. Ben Chow’s counsel includes Samson Enzer of Cahill Gordon & Reindel LLP, who has called the claims meritless.
Key Takeaways
- Freeze lifted: A $57.6M USDC freeze tied to LIBRA was lifted after the court found insufficient showing of irreparable harm.
- Wallet balances: The frozen wallets remain, holding $13.06M and $44.59M; assets have not moved since the original freeze.
- Case status: Plaintiffs seek over $100M; the judge expressed skepticism about plaintiffs’ likelihood of success but the case is ongoing.
Conclusion
This ruling restores access to the $57.6 million in USDC for Hayden Davis and Ben Chow while leaving the broader LIBRA token litigation active. COINOTAG will monitor filings, on-chain movements, and forthcoming motions to dismiss as the case progresses. Subscribe for updates on court developments and on-chain evidence.
