U.S. Court Freezes $57 Million USDC Allegedly Linked to LIBRA Scandal

A federal court in Manhattan has frozen approximately $57 million worth of USDC believed to be related to the controversial memecoin Libra.

A U.S. federal court has frozen approximately $57.65 million worth of stablecoin USDC in a class-action lawsuit related to the controversial memecoin Libra. Onchain data shared with Cointelegraph by the class's attorney, Max Burwick, shows that nearly $57 million in USDC was frozen on May 28 after the Manhattan court agreed to a temporary freeze.

"Yesterday, a federal court in SDNY [Southern District of New York] issued a temporary restraining order at our request, Burwick Law, supported by Tim Treanor, freezing approximately $57.65 million USDC held at Circle," he added, noting that the court is expected to hold a hearing on June 9 to determine whether the assets will remain frozen during the class action.

Burwick is representing Omar Hurlock and other plaintiffs in the class action against cryptocurrency investment firm Kelsier Ventures and three co-founders Gideon, Thomas, and Hayden Davis on March 17, accusing them of creating the cryptocurrency Libra (LIBRA) and deceiving investors to withdraw over $100 million from one-way liquidity pools.

The lawsuit also names blockchain infrastructure companies, KIP Protocol and CEO Julian Peh, along with Meteora and co-founder Benjamin Chow, as defendants. #protocol