US Court Unfreezes $57M USDC Tied to Libra, Sparking Market Rally
TL;DR
- US court releases $57M USDC tied to Libra, leading to a surge in market activity and a sharp rally.
- LIBRA token soars 393% in 24 hours, driven by asset release and renewed investor interest.
- Despite legal uncertainties, traders push LIBRA higher, with increased volume and volatility.
Federal Judge Lifts Freeze on USDC
A US federal judge has unfrozen over $57 million in USDC linked to the Libra token lawsuit. The funds were held in wallets associated with Hayden Davis and Ben Chow, frozen in May amidst a class-action case seeking over $100 million in damages related to the Libra collapse.
Judge Jennifer L. Rochon of the Southern District of New York decided to release the funds, citing compliance with restrictions by Davis and Chow. The lawsuit continues, with the plaintiffs yet to prove the necessity of keeping the funds frozen.
Chow’s attorney plans to file a motion to dismiss, calling the claims “untested,” as the defendants access capital for their defense.
LIBRA Token Surges in Price
Following the asset release news, the price of the LIBRA token skyrocketed, increasing by over 393% in 24 hours and 409% in a week. Currently priced at $0.043, LIBRA’s daily trading volume nears $70,000.
The token’s surge comes after a collapse in February, reaching a peak market cap of $4.56 billion post-launch, influenced by a social media post from Argentine President Javier Milei that caused a drastic drop.
LIBRA Project Faces Scrutiny
Davis and Chow’s roles in the LIBRA project during its downfall have sparked legal issues. Despite the recent court ruling and increased demand, the project’s long-term future remains uncertain.