Circle freezes $57.5 million in USDC from the LIBRA memecoin team following lawsuit.

Circle froze $57 million in USDC linked to promoters of LIBRA amid ongoing legal battles in Argentina and the United States. The freeze intensifies the repercussions of the February LIBRA pump and dump scandal involving prominent figures in the cryptocurrency space. The advancing federal civil lawsuits may have pressured Circle's action, signaling stricter scrutiny on cryptocurrency promoters.

Whatever has happened, this act represents a severe loss for the LIBRA team. High-ranking Argentine government officials, such as President Milei, may or may not face serious consequences, but crypto entrepreneurs have less protection.

The LIBRA debacle this February was a major scandal in the crypto industry, allegedly involving an acting head of state. Although President Javier Milei is personally under scrutiny, many LIBRA promoters are also facing charges.

Earlier today, Circle froze $57.5 million in the LIBRA team's USDC holdings, representing a significant escalation. Circle, one of the largest issuers of stablecoins, has frozen user assets on many occasions besides LIBRA.

However, there is also a competing narrative that seems credible. The charges in Argentina against the LIBRA promoters are very serious, but Circle is a U.S. company. It is located in New York City, where Burwick Law is filing a civil lawsuit against non-Argentinian participants of LIBRA.