Circle has frozen nearly $58 million in digital assets that were held in two Solana-based wallets. Best known as the company behind USDC stablecoin, Circle made this decision because the wallets were linked to the Libra-meme coin scandal. It is the same scandal that troubled Argentine President Javier Milei earlier this year.

According to data taken from Solscan, the wallets held $13.06 million and $44.59 million in USDC. The millions are now marked as “frozen” by Circle. Due to Circle’s ability to blacklist accounts under its compliance policy, the funds are now inaccessible for trades or transfers. The news coincided with Circle filing for an initial public offering (IPO) on the New York Stock Exchange, aiming for a $6.7 billion valuation. The company has yet to make a public statement.

Circle Freezes $58 Million in USDC

The wallets are allegedly linked to the team behind the Libra meme token. This Solana-based cryptocurrency gained notoriety after President Milei promoted it on X.com in February. The token’s value skyrocketed to a multi-billion-dollar market cap before crashing nearly 90%, creating accusations of a pump-and-dump scheme. Wallets associated with the token reportedly cashed out significant profits during the collapse.

Now, several parties are claiming responsibility for the wallet freeze. Burwick Law, a crypto-specialized legal firm, states that it secured a temporary restraining order from a federal court in the Southern District of New York. “Yesterday, a federal court… entered a temporary restraining order at our request, supported by Tim Treanor, freezing approximately 57.65 million USDC,” said Max Burwick in a statement shared with Decrypt. A preliminary injunction hearing is scheduled for June 9, 2025.

However, Martin Romeo, a plaintiff in the Argentine legal case against Libra, suggested that Argentina’s justice department may have requested the freeze independently. The overlapping claims reflect the international complexity of the scandal, which has blurred the lines between crypto markets, legal jurisdictions, and politics.

Burwick Law has previously filed a class-action lawsuit against Kelsier Ventures, Meteora, and several of their executives for their alleged involvement in the Libra token’s deceptive rise and fall.

President Milei, who once championed the Libra token, was later charged with fraud following the scandal. Although Argentina formed a government task force to investigate the matter, the unit was disbanded last week, raising further questions about the political fallout. As the legal battle unfolds, the fate of the frozen $58 million and its implications for stablecoin regulation remain under close watch from both the crypto industry and global regulators.

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