LIBRA Token Fallout: Court Blocks $57.65M in USDC Linked to Kelsier Ventures

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When Meme Coins Go Wrong: A $57.65M Comedy of Errors! 😂💸

In a twist worthy of a tragicomedy, a federal court in the land of the free has decided to freeze a staggering $57.65 million in USDC, all thanks to the infamous LIBRA meme coin. Yes, you heard it right! The latest act in this ongoing drama is a significant move in a class-action lawsuit that has all the makings of a soap opera—complete with alleged fraud and a cast of characters that could rival any Shakespearean play.

On the fateful day of May 28, the Southern District of New York, in a fit of judicial fervor, issued a Temporary Restraining Order (TRO) that has left two Solana-based wallets, linked to the ever-controversial Kelsier Ventures, gasping for air. This firm, the mastermind behind LIBRA’s chaotic debut, is now under the watchful eye of the law. Burwick Law, representing the beleaguered investors, claims they were led astray by the siren songs of LIBRA’s promoters. Who knew that investing could feel like a game of musical chairs?

The lawsuit, filed on March 17, has named the co-founders of Kelsier—Gideon, Thomas, and Hayden Davis—along with Julian Peh of KIP Protocol and Benjamin Chow of Meteora. The plaintiffs allege that this merry band orchestrated a grand deception, luring unsuspecting retail investors into one-sided liquidity pools, only to pull the rug out from under them, draining over $100 million in value through coordinated token dumps. Talk about a financial magic trick gone wrong!

Once upon a time, in February, LIBRA soared to a dizzying $4 billion market cap, all thanks to a public endorsement from Argentine President Javier Milei. But like all good things, this rally was short-lived. Within mere hours, the token nosedived over 90%, sending investors into a frenzy and causing political ripples in Argentina. Milei, perhaps realizing the folly of his endorsement, swiftly deleted his social media posts and, on May 19, disbanded the national task force that was set up to investigate this debacle. A true leader knows when to cut his losses, right?

According to the latest on-chain gossip, the two wallets, holding over $44 million and $13 million respectively, were frozen through Circle’s infrastructure, all thanks to the court’s decree. A hearing on June 9 will determine if this freeze remains in place as the case unfolds. Will justice be served, or will this saga continue to unfold like a poorly written sitcom?

This ruling could set a precedent for asset protection in the wild west of crypto-related lawsuits, signaling that perhaps, just perhaps, there will be stricter oversight for those hype-driven token launches in the future. Who knew that the world of cryptocurrency could be so… entertaining?

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2025-05-30 00:20