Core of the event: Court ruling lifts freeze on $LIBRA-related assets
• On August 20, 2025, the blockchain visualization platform Bubblemaps (@bubblemaps) posted on X platform angrily denouncing a recent court ruling as 'almost legalizing crime,' highlighting the $57.6 million USDC that was unfrozen in connection with the infamous collapse of the LIBRA meme coin.
The post garnered 96 likes, 21 retweets, and over 23,000 views within hours, citing a February post that exposed alleged connections between LIBRA and other short-lived tokens like $MELANIA, accompanied by four screenshots from a Decrypt article, reigniting discussions on accountability for celebrity-backed cryptocurrencies.
• U.S. District Judge Jennifer L. Rochon ruled to lift the freeze on the assets held by Kelsier Labs LLC CEO Hayden Davis and Meteora founder Ben Chow. These assets were frozen in June due to a class-action lawsuit seeking over $100 million in damages. The judge now believes that $57.6 million in USDC can be recovered through monetary compensation, without the need to retain the assets.
The judge stated that the defendants exhibited cooperation and were not 'evasive actors,' expressing skepticism about the likelihood of the plaintiffs winning, pointing out that the case is in its early stages and lacks evidence of irreparable harm. The relevant assets remain in two wallets, holding $13.06 million and $44.59 million, which have not been accessed since the freeze.
$LIBRA's rise and fall amid controversy
• $LIBRA launched on Solana in February 2025 as a meme coin, promoted by Argentine President Javier Milei as a financing tool for small businesses, briefly soaring to a market cap of $1.17 billion before plummeting 97% to $33 million within 24 hours, triggering 'rug pull' allegations.
• On-chain evidence indicates that it shares the same development team as MELANIA (the token related to former First Lady Melania Trump).
Bubblemaps' February post detailed cross-chain transfers via USDC's CCTP, showing wallets like 0xcEA providing funding to LIBRA's creators and profiting over $100 million through sniping token issuance on various tokens like TRUST and KACY.
Analysis in collaboration with investigator Coffeezilla revealed operational patterns such as sniping and pump-and-dump schemes, suggesting that Davis and Chow were involved in misleading promotions.
Involved parties' dynamics and litigation progress
• Davis previously claimed to have an advisory relationship with Milei and was responsible for safeguarding $LIBRA funds, but later changed his statement in court, referring to it as 'ironic meme coin' and not a serious investment vehicle.
• Chow resigned from Meteora amid the scandal, with co-founder Meow stating that he showed 'poor judgment' in trusting Davis.
The lawsuit filed in New York accuses them of fraud, but Davis seeks to dismiss the case, stating that the project is global and not specifically targeting U.S. investors. The unfreezing of assets briefly boosted the price of $LIBRA, highlighting the sensitivity of meme coins to legal news.
Community response and event impact
• The community reacted strongly to Bubblemaps' post, with a mix of anger and dark humor: some users lamented financial losses, others called for harsh actions against Davis, while some used memes to mock 'maximal extraction,' and others pointed out that Circle has yet to lift the freeze on these USDC, adding details to the event.
This reflects a common sentiment in the crypto space: frustration with seemingly unpunished phenomena in unregulated areas, exacerbated by political endorsements.
• The ruling raised questions about meme coin accountability. Although the plaintiffs (represented by Burwick Law) are still pursuing the case, the defendants' lawyers claim this proves the case is 'worthless.'
For Bubblemaps, this post reinforces its role in exposing on-chain truths, which may have implications for future regulation.
As the price of $LIBRA continues to languish, this scandal highlights the risks of speculation-driven assets, reminding investors to focus on visual analysis rather than celebrity tweets.
