Circle, the issuer of the USDC stablecoin, has frozen two wallet accounts tied to the Libra memecoin scandal, halting the movement of approximately $57.6 million worth of USDC, according to blockchain intelligence platform Arkham. Arkham’s data revealed that one wallet—believed to be the Libra deployer wallet—held nearly $13 million, while another associated account contained $44.59 million in USDC. Both wallets are now frozen. Circle’s action, though not uncommon during legal investigations or breaches, has drawn attention due to the high-profile nature of the scandal, which includes ties to Argentine President Javier Milei.

It remains unclear which legal entity requested the freeze. U.S.-based Burwick Law claims that a temporary restraining order was granted by the U.S. District Court for the Southern District of New York. However, Martin Romeo, a plaintiff in Argentina’s Libra-related case, asserted the freeze was enforced through local Argentinian courts.

Circle has yet to publicly comment on the situation, and online speculation continues over the true origin of the freeze order.

Libra’s Meteoric Rise and Crash

Built on Solana, the Libra memecoin initially garnered mainstream interest after being promoted by President Milei, who posted the token contract and links via social media. The coin’s market cap soared to over $2 billion before collapsing by more than 90%, causing widespread investor losses.

Milei later distanced himself from the project, stating he had no prior knowledge and did not intend to promote it as an investment. However, Hayden Davis, CEO of Kelsier Ventures and alleged advisor to Libra, claimed he paid Milei’s sister to influence the president’s endorsement.

Milei now faces fraud allegations over his involvement. Argentine lawyers filed charges after the token crash, though the president maintains he acted innocently. In response, a local judge ordered the unsealing of Milei’s and his sister’s bank accounts earlier this month.

In a surprising turn, Argentina recently disbanded the investigative unit probing the scandal, raising fresh concerns about political interference in the judicial process.

The Libra case underscores the risks of political endorsements in crypto and the growing need for transparency and legal safeguards in the memecoin space.

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