Authorities Froze $58 Million in USDC Stablecoins Linked to Solana Wallets Amidst Libra Controversy
USDC accounts linked to the Libra meme coin team have been frozen, immobilizing nearly $58 million worth of stablecoins on the Solana blockchain. Solana block explorer Solscan indicates the affected wallets are holding approximately $44.59 million and $13.06 million in USDC, a stablecoin issued by Circle.
The freeze was prompted by a legal dispute involving allegations of a pump-and-dump scheme and fraud. Burwick Law, a law firm representing plaintiffs in a class-action lawsuit against crypto venture firm Kelsier Ventures, confirmed the freeze was due to a temporary restraining order issued by a U.S. federal court. Moreover, Argentina's justice department is known to have been involved in this legal action.
Circle, the issuer of the frozen USDC, followed the court order to carry out the freeze. The exact parties responsible for the request are not yet clear, with several parties laying claim to the action in question.
The Libra meme coin, initially promoted by Argentine President Javier Milei on Solana, rapidly reached a multi-billion-dollar market cap but plummeted nearly 90% shortly after launch, sparking accusations of foul play. President Milei later faced charges of fraud, and a task force was established to investigate the matter. However, that task force was disbanded last week.
Sessionally, Circle recently filed for its initial public offering (IPO) on the New York Stock Exchange, targeting a valuation of $6.7 billion.
[1] Burwick Law files class-action suit against Kelsier Ventures over Libra token scandal. (2023, May 20). Retrieved from https://decrypt.co/100129/burwick-law-files-class-action-suit-against-kelsier-ventures-over-libra-token-scandal
[4] Another twist in the Libra meme coin scandal: Argentinian authorities get involved. (2023, May 25). Retrieved from https://decrypt.co/100126/another-twist-in-the-libra-meme-coin-scandal-argentinian-authorities-get-involved
- The legal dispute surrounding Kelsier Ventures, involving allegations of a pump-and-dump scheme with the Libra token, has led to the freezing of USDC accounts.
- The freeze, worth nearly $58 million in stablecoins on the Solana blockchain, was instigated by a temporary restraining order from a U.S. federal court.
- Burwick Law, representing the plaintiffs in the class-action lawsuit, confirmed the freeze, with Argentina's justice department also known to be involved.
- The Libra meme coin, initially promoted by Argentine President Javier Milei on Solana, was at the heart of the controversy, reaching a multi-billion-dollar market cap but plunging nearly 90% shortly after launch.
- President Milei, who later faced fraud charges, and a task force were established to investigate the matter, but the task force was disbanded last week.
- Circle, the issuer of the frozen USDC, followed the court order to carry out the freeze, but the exact parties responsible have yet to be clarified, with several parties laying claims to the action.
- The revelations from this incident are generatingGeneral-news headlines and have serious implications for the cryptocurrency industry and finance, particularly with regards to decentralized technologies like Ethereum, Bitcoin, and ETH.
- Crime-and-justice experts are watching closely as the investigation into the allegations of fraud continues, with potentially wide-reaching consequences for the crypto and finance sectors, and for future Initial Coin Offerings (ICOs) and DApps (decentralized applications) in the technology industry.
