TL;DR
- US court unfreezes $57M USDC tied to Libra, sparking renewed market activity and a sharp rally.
- LIBRA token skyrockets 393% in one day, fueled by asset release and renewed investor attention.
- Despite lawsuit uncertainty, traders push LIBRA higher, with volume rising and volatility returning to the token.
Federal Judge Releases Frozen USDC
A US federal judge has lifted a freeze on over $57 million in USDC connected to the Libra token lawsuit. The funds were held in two wallets tied to meme coin promoter Hayden Davis and Ben Chow, the former CEO of Meteora exchange. The assets were frozen in May as part of a class-action case brought by investors seeking over $100 million in damages related to the collapse of the Libra token.
Judge Jennifer L. Rochon, presiding in the Southern District of New York, said she no longer saw a reason to keep the freeze in place. The court found that both Davis and Chow had complied with earlier restrictions and had made no attempt to move or conceal the funds.
Meanwhile, the lawsuit remains ongoing. Although Judge Rochon removed the freeze, she did not dismiss the case. She noted the early stage of proceedings and said the plaintiffs had not demonstrated that keeping the funds frozen was necessary.
During the hearing, Chow’s attorney, Samson Enzer of Cahill Gordon & Reindel LLP, referred to the claims as “untested” and said they plan to file a motion to dismiss. The court’s decision to release the funds gives the defendants access to capital as they prepare their defense.
LIBRA Token Sees Sharp Price Reaction
Following news of the asset release, the price of the LIBRA token jumped sharply. It rose over 393% in the last 24 hours and by more than 409% over the past week. At the time of writing, LIBRA is priced at $0.043 with a daily trading volume of just under $70,000.
Remarkably, the surge comes months after LIBRA’s collapse in February. The token reached a peak market cap of $4.56 billion shortly after its launch, driven in part by a now-deleted social media post from Argentine President Javier Milei. The post led many to believe the project had government support, but the price dropped by more than 97% within 24 hours.
Project Remains Under Scrutiny
Davis became the public face of the project during its decline and later claimed he remained in control of the token’s assets. Chow resigned from Meteora after the fallout, with internal disputes over the decision to work with Davis.
Although there have been unresolved legal issues, the recent court ruling has raised eyebrows over LIBRA. Demand is back on the rise; however, the future of the project remains uncertain in the long term.
