A federal judge in Manhattan has lifted the asset freeze on $57.6 million related to the Libra token due to the defendants' compliance with court orders.
Reasons for Lifting the Asset Freeze
U.S. District Judge Jennifer L. Rochon decided to lift the asset freeze on funds controlled by defendants Hayden Davis and Ben Chow, noting their compliance with court proceedings. In June 2023, the judge had frozen $57.6 million worth of USDC as part of a case where the plaintiffs sought over $100 million in damages.
Legal Battle and Allegations
The plaintiffs allege that Davis and Chow misled investors by promoting the Libra Solana meme coin through social media posts featuring Argentine President Milei, trying to give the token a legitimate appearance. Chow's lawyer, Samson Enzer, has labeled the plaintiffs' claims as 'untested and meritless.'
Consequences of the Libra Token Scandal
The Libra token scandal erupted after its market capitalization reached $1.17 billion but quickly plummeted by 97% to $33 million. Upon launch, the token was presented as a funding tool for small businesses. However, it soon became apparent that Libra was not the official token of Argentina, leading to allegations of insider trading. Davis and Chow have been trying to clear their names for six months, while President Milei continues to distance himself from the scandal.
The lifting of the asset freeze marks a new chapter in the legal battle, yet both sides remain in uncertainty regarding future actions and the potential outcomes of the case.
