Federal Court Freezes $57.65M in USDC Amid LIBRA Fraud Lawsuit

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The US District Court for the Southern District of New York (SDNY) has issued a temporary restraining order freezing approximately $57.65 million in USDC stablecoins linked to the alleged LIBRA memecoin fraud.

According to on-chain data, the funds were frozen on May 28 after the court approved the request. Burwick Law, representing plaintiffs in the class-action case, confirmed the freeze and noted that a June 9 hearing will determine whether the assets remain locked.

The lawsuit, filed on March 17, accuses Kelsier Ventures and its founders—Gideon, Thomas, and Hayden Davis—of creating the LIBRA token to mislead investors and extract over $100 million through manipulated liquidity pools. Additional defendants include KIP Protocol, its CEO Julian Peh, and Meteora co-founder Benjamin Chow.