Judge Unfreezes $57.6M in Libra-Related Crypto Assets Amid Legal Battle

A Manhattan federal judge has unfrozen $57.6 million in USDC tied to the Libra meme coin scandal, reversing an earlier freeze order. The assets, controlled by Hayden Davis of Kelsier Labs and Ben Chow of Meteora, were initially frozen in June as part of a lawsuit seeking over $100 million in damages. Judge Jennifer L. Rochon cited the defendants' compliance with court proceedings as grounds for the reversal, stating they showed no signs of being "evasive actors."

The Libra token, promoted by Argentine President Javier Milei, collapsed within hours of its February launch. The judge expressed skepticism about the plaintiffs' chances of success, noting the availability of monetary compensation for the putative class. The case underscores the volatile intersection of meme coins, celebrity endorsements, and regulatory scrutiny.