Legal Showdown: Burwick Law Moves to Freeze Hayden Davis’s LIBRA Holdings

Another day, another crypto custody battle—this time with lawyers playing hot potato with digital assets. Burwick Law just filed to freeze Hayden Davis’s LIBRA tokens, proving once again that blockchain’s ‘immutable’ ledger still bends to old-school legal muscle.

When subpoenas meet smart contracts, guess which one blinks first? The irony? Davis’s tokens might be frozen faster than a decentralized exchange facing regulatory scrutiny. Ah, finance—where the only thing more volatile than crypto prices is the rulebook.

In the case of LIBRA, the token led to over $250M in user losses, and never recovered from its initial crash. Unlike other meme tokens, LIBRA has lost all confidence, and traders are not touching it even for an irrational pump. 

The low volumes mean even the team and initial investors are technically incapable of shedding their assets, unlike other more liquid memes. Additionally, the wallets of Kelsier Ventures have mostly divested their LIBRA, instead holding SOL and USDC, as well as other assets that cannot be frozen. 

The request arrives just a day after Circle froze $57M in USDC tokens, making them unmovable on-chain. Further requests have been sent to freeze any remaining USDC in the team and influencer wallets linked to early LIBRA traders. 

The requests by Burwick Law also targeted the same USDC wallets which also received a request from an Argentinian court. In that case, Circle was directly contacted and performed the freezing transaction. Circle can then re-issue the USDC, to be used in trader compensation. The Libra Team 1 wallet was one of the affected wallets with a freeze of 13.06M USDC.

LIBRA has a total of 24,519 holders as of May 2025, though most of the tokens are still concentrated in team wallets. 

Burwick Law aims to block LIBRA by court order

The request by Burwick Law does not involve any on-chain actions. Instead, the firm has obtained a court order against the usage of crypto held in the wallets of the LIBRA team and associates. 

In the case of Hurlock v. Kelsier Ventures et al, Burwick Law obtained a Temporary Restraining Order. For now, it remains uncertain how this order can be implemented on-chain, as the movement of solana assets is still unrestrained. 

The restraining order affects any remaining LIBRA in the team’s wallets, as well as the identified $110M in proceeds, which Burwick Law links to other wallets belonging to Hayden Davis’s Kelsier Ventures. 

The court order to ban further transactions is one of the first attempts at recovery for the victims of the meme token. The high profile of LIBRA and its connections to Argentina’s President Javier Milei meant the asset was treated as more than just another meme. LIBRA launched during the peak craze for celebrity and official tokens, managing to bring in up to $250M in investments, before erasing over 90% of its value in minutes.

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