Circle Freezes $57.5M USDC Linked to LIBRA Meme Coin Amid Legal Probe

Circle, the issuer of USDC, has frozen $57.5 million in assets connected to the LIBRA meme coin project as legal scrutiny intensifies. The action follows allegations of misconduct involving high-profile individuals, including Argentinian President Javier Milei. While the specific trigger remains unclear, the move highlights increasing regulatory risks for crypto ventures.

Argentinian authorities are investigating the LIBRA case, which involves both local promoters and international participants. Parallel proceedings in New York federal court indicate a broadening legal scope. Circle’s compliance with these measures underscores the jurisdictional complexities in decentralized finance.

This asset freeze marks a major escalation in the LIBRA investigation, serving as a warning to crypto entrepreneurs. Unlike traditional businesses, digital asset projects often lack institutional safeguards, making them susceptible to abrupt regulatory actions.