Court block $57.65 million in USDC related to Kelsier Ventures

The U.S. federal court has ordered the freezing of about $57.65 million in USDC to be linked to the embattled Libra meme coins. The latest developments are a major move against ongoing class action lawsuits suspected of fraud.

The freeze was implemented on May 28 through a temporary restraining order (TRO) issued in southern New York, affecting two Solana-based wallets associated with Kelsier Ventures, the company that Libra’s controversial launch. The legal lawsuit was initiated by Burwick Law, representing investors who claim they were misled by Libra’s promoters.

The lawsuit filed on March 17, naming Kelsier’s co-founders Gideon, Thomas and Hayden Davis, as well as Kip Protect’s Julian Peh and Meteora’s Benjamin Chow. Plaintiffs claim the team orchestrated a deceptive plan that attracts retail investors to a unilateral liquidity pool that can only drain over $100 million of value through a coordinated token dump.

Libra briefly soared to a $4 billion market cap in February after public recognition from Argentina President Javier Milei. However, the gathering was short-lived. In a few hours, the tokens plummeted by more than 90%, triggering investor panic and political consequences in Argentina. Miley later deleted his social media posts and disbanded the country task force set up to investigate the incident on May 19.

According to the data on the chain, the two wallets contain more than $44 million and $13 million respectively, which were frozen through Circle’s infrastructure under court orders. The June 9 hearing will determine whether the freeze exists when the case occurs.

The ruling could set an important precedent for asset protection in crypto-related litigation and signal stricter oversight of hype-driven token launches.