A US judge has unfreezed $57.6 million in USDC tied to the Libra token scandal, restoring access to promoters Hayden Davis and Ben Chow while confirming funds remain available to reimburse victims, citing the defendants’ cooperation and no evidence they moved the frozen assets.
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$57.6M in USDC unfrozen by US judge
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Judge cited cooperation and availability of victim restitution funds.
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$107M alleged rug pull size cited in original investor complaints.
Libra token scandal: US judge unfreezes $57.6M in USDC, restoring access for Hayden Davis and Ben Chow while preserving funds for victim reimbursement. Read the update.
What did the US judge decide about the frozen USDC?
The judge unfreezed $57.6 million in USDC tied to the Libra token scandal, allowing memecoin promoter Hayden Davis and ex-Meteora CEO Ben Chow controlled access to the funds. The court said defendants cooperated, the assets remained available for victim reimbursement, and there was no clear, irreparable harm.
The judge cited ongoing cooperation of the defendants in the case as one of the reasons for unfreezing the stablecoins.
A US judge ordered the release of $57.6 million in USDC in August after freezing the funds in May amid a class-action lawsuit naming Hayden Davis, Ben Chow, KIP Protocol and Julian Peh. The court found no evidence the frozen assets had been moved and noted funds to reimburse victims are still accessible.
How did the Libra token collapse affect investors and public figures?
The Libra token launched in February as a project said to support Argentina’s small businesses but collapsed within hours, generating investor losses. The event has been described in filings and reporting as a $107 million rug pull and drew attention from Argentine President Javier Milei, triggering an ethics review and political controversy.
Milei publicly distanced himself from the token, saying he endorsed a private venture unintentionally via social media. That statement did not prevent congressional inquiries or calls for impeachment, though official probes were later closed without charges, raising questions among critics about political interference.
Why did the judge say funds could be released?
The court concluded defendants demonstrated ongoing cooperation and did not attempt to move frozen funds. The judge noted that assets earmarked for victim reimbursement remained intact, reducing the immediate risk of irreparable harm that justified the initial freeze.
What actions remain in the litigation?
Class-action litigation continues. A July motion to dismiss filed by Hayden Davis was denied as moot, and the court expressed skepticism about the ultimate success of some claims. Plaintiffs may still pursue remedies; the unfreezing does not equate to case dismissal.
Summary table: key amounts and timelines
| Item | Amount / Date |
|---|---|
| Unfrozen USDC | $57.6 million (August 2025) |
| Alleged rug-pull losses | $107 million |
| Initial freeze | May 2025 |
Frequently Asked Questions
Who regained access to the unfrozen funds?
Hayden Davis and Ben Chow were named as parties granted access to the $57.6 million in USDC after the judge lifted the freeze, subject to court conditions and oversight.
Does the unfreeze stop the class-action lawsuit?
No. The unfreezing of assets is procedural and does not resolve substantive claims. Plaintiffs retain the right to pursue damages and other remedies in the ongoing class-action litigation.
Key Takeaways
- Judge’s rationale: Cooperation and availability of restitution funds reduced the risk of irreparable harm.
- Case status: Litigation remains active despite the release of funds; motions and discovery continue.
- Public impact: The episode intensified scrutiny of memecoin promotions and political figures tied to token endorsements.
Conclusion
The unfreezing of $57.6 million in USDC marks a procedural shift in the litigation stemming from the Libra token scandal. While access was restored to Hayden Davis and Ben Chow, the court preserved the possibility of victim reimbursement and left substantive claims unresolved. Observers should monitor filings and official statements for next steps.
