A U.S. judge has reinstated access to $57.6 million in USDC stablecoins connected to the Libra token scandal from February, allowing memecoin promoter Hayden Davis and former CEO of the Meteora decentralized exchange, Ben Chow, to access the funds.
Judge Jennifer L. Rochon had previously frozen the funds in May during a class-action lawsuit against Davis, Chow, blockchain infrastructure firm KIP Protocol, and KIP co-founder Julian Peh.
The judge noted that the defendants failed to prove “irreparable” harm, as funds for victim reimbursement remain available, and they made no attempts to withdraw the frozen assets, as reported by Law360.
In July, Davis sought to dismiss the lawsuit against him, but the court labeled that motion as “moot.” Regardless, Rochon expressed skepticism about the likelihood of success for the class-action lawsuit targeting Davis, Chow, and others.
The Libra token scandal is viewed as one of the most notable rug pulls, drawing attention to Argentine President Javier Milei and instigating both ethics investigations and class-action lawsuits from investors.
Related: From Coinbase to Milei and LIBRA: Crypto class-action suits accumulate
The Libra token scandal and its impact on the crypto landscape
Launched in February, the Libra token aimed to support small businesses in Argentina and was initially endorsed by Milei on social media.
However, the token collapsed within hours, leading to significant backlash from investors who experienced what was described as a $107 million rug pull.
Milei distanced himself from the venture, claiming ignorance of the project’s foundation and rolling back on his original promotion.
“A few hours ago, I posted a tweet, like countless times before, endorsing a supposed private venture with which I clearly have no ties,” Milei stated in a Feb. 14 X post.
This statement did little to halt a congressional investigation into Milei for potential ethics breaches and calls from Argentinian lawmakers for his impeachment.
Nonetheless, Milei ended the investigation and disbanded the task force without any charges or findings against his office, leading to accusations of a politically motivated cover-up.
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