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Circle froze $57.6 million in USDC across two wallets tied to the Libra memecoin case.
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Legal origin of the freeze order remains disputed.
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LIBRA’s collapse followed promotion by Argentina’s president, then a 90% crash.
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Fraud charges and investigations are ongoing in Argentina.
Circle Moves to Lock Suspicious USDC
Stablecoin issuer Circle has frozen two wallets containing nearly $58 million in USDC, both linked to the controversial Libra memecoin project. Blockchain analytics firm Arkham flagged the wallets, one of which holds over $44 million, while the other belongs to the token’s deployer.
It’s still unclear who authorized the freeze. Competing legal claims suggest both U.S. and Argentine authorities may have played a role.
Political Ties and Token Collapse
The Solana-based memecoin gained notoriety after Argentine President Javier Milei promoted it as a tool for small businesses. LIBRA’s value surged to a $2 billion market cap before crashing by over 90%. Milei later distanced himself from the project, claiming he was misled.
Hayden Davis, reportedly an advisor to the project, said he paid Milei’s sister to help secure the president’s support.
Legal Fallout Continues
Fraud charges have been filed against Milei in Argentina. Earlier this month, a judge ordered the unsealing of his and his sister’s bank accounts. However, the investigative unit overseeing the Libra case was suddenly disbanded, casting uncertainty over the future of the probe.
