US Court Unfreezes $57.6M USDC From Libra Rug Pull
The stablecoin’s liquidity remains intact after a US federal judge lifts a May freeze on $57.6M in USDC tied to the failed February Libra token. Judge Jennifer L. Rochon cited the defendants’ cooperation, the availability of restitution funds, and no asset transfers. The freeze stemmed from a $107M rug pull that collapsed hours after launch, triggering investor lawsuits and an ethics probe into Argentina’s President Javier Milei. Although Milei denied involvement and the probe was disbanded, litigation against promoters Hayden Davis, Ben Chow, KIP Protocol and Julian Peh continues. Traders should monitor USDC liquidity and regulatory scrutiny on token launches, as the unfreeze could boost market confidence and stabilize trading volumes.
Neutral
Unfreezing $57.6M in USDC restores stablecoin liquidity and market confidence without affecting the peg, making price movements unlikely. In the short term, traders gain access to blocked funds, easing liquidity constraints. Long term, the ruling reinforces regulatory scrutiny on token launches yet underpins trust in USDC’s stability. Overall, the impact on USDC’s price remains neutral.