US Court Halts $57.65M in USDC Associated with LIBRA Coin and Kelsier Ventures

A US federal court has imposed a freeze on around $57.65 million in USDC connected to the troubled LIBRA meme coin, marking a significant turn in an ongoing class-action lawsuit alleging fraud. The freeze, carried out on May 28 through a Temporary Restraining Order, impacts two Solana-based wallets linked to Kelsier Ventures, the company responsible for the contentious launch of LIBRA.

The legal action was initiated by Burwick Law on behalf of investors who claim they were deceived by the promoters of LIBRA. The company's co-founders and other key figures are named in the lawsuit, which accuses them of tricking retail investors into lopsided liquidity pools and siphoning off over $100 million via coordinated token dumps. A court hearing on June 9 will decide if the freeze stays while the case progresses.