Judge lifts freeze on $57.6 million in USDC tied to Libra token case

A federal judge in Manhattan lifted a freeze on $57.6 million in USDC connected to the failed Libra memecoin launch, restoring access to funds controlled by promoters Hayden Davis and Benjamin Chow.

U.S. District Judge Jennifer L. Rochon vacated the restraint on August 19, 2025, after finding that the plaintiffs failed to demonstrate irreparable harm. The decision unlocked two Solana wallets holding $44.59 million and $13.06 million in USDC that had been frozen since late May.

The ruling comes in Hurlock v. Kelsier Ventures, a class action lawsuit in the Southern District of New York. Plaintiffs accuse Davis, Chow, KIP Protocol co-founder Julian Peh, and others of misleading investors during the Libra token’s rapid rise and collapse in February 2025.

Judge Rochon determined at the August 19 hearing that money damages could adequately compensate the proposed class. “It is plain that money damages would be available to compensate the putative class,” Rochon said in court. “Plaintiffs have not made a sufficient showing of irreparable harm.”

The USDC freeze began following a May 27 hearing and temporary restraining order. Circle restricted the funds on May 28 at the court’s direction. On-chain data shows the two Solana wallets remained inactive during the restraint period.

Defense counsel for Davis called the case “meritless” after the hearing, stating there was “no evidence that our client did anything wrong or caused losses.”

Libra launched in mid-February and reached a multi-billion-dollar valuation after online promotion that included a post by Argentina’s President Javier Milei. The token crashed within hours of its peak. Plaintiffs allege the project drained more than $100 million from liquidity pools.

The case moved to federal court in May after Judge Rochon initially granted the temporary freeze. The August 19 decision lifts the asset freeze but does not resolve the underlying claims seeking more than $100 million in alleged losses. The class action lawsuit continues in federal court.