A Manhattan federal court has ruled to unlock $57.6 million in USDC tied to the Libra cryptocurrency, sparking discussions on the potential future use of these funds.
Background of the Case
The amount of $57.6 million had been frozen since May amid allegations of fraud and market manipulation against defendants Hayden Davis of Kelsier Labs and Ben Chow, former head of the Meteora exchange.
Court Ruling
Judge Jennifer L. Rochon stated there was no clear reason to keep the funds frozen as both defendants had cooperated. The wallets still hold $13 million and $44 million, untouched since June. The court noted that speculative arguments alone do not justify an emergency freeze.
Market Impact and Future Cases
The price of Libra coin rose briefly after the ruling but remains significantly below its peak. This judicial decision could set a precedent for future digital asset litigation, as solid evidence will be required to justify freezing funds.
Judges require proof of harm before freezing assets, which protects defendants but can slow the claims process for investors.