A US Federal Judge unfroze $57.5 million from LIBRA promoters Hayden Davis and Ben Chow, prompting the meme coin to briefly spike. Judge Rochon warned that the lawsuit against these men may fail altogether.
Although all the details have yet to surface, the crypto community reacted with incredulity. Since President Milei dissolved the Task Force investigating him, none of the meme coin’s promoters may face lasting consequences.
Huge Upset in LIBRA Lawsuit
A few months ago, the LIBRA meme coin turned into a tremendous scandal in Argentina, as rug pull accusations implicated President Milei and several cabinet members.
Compared to this, Burwick Law’s suit against two promoters, Hayden Davis and Ben Chow, was a sideshow, but there’s been an unexpected twist.
According to court reporting, a US federal judge lifted an asset freeze on the meme coin promoters’ assets, throwing the LIBRA case into disarray.
In May, Burwick Law’s class-action suit became a federal case, and the courts froze $57.5 million in USDC. Davis and Chow will now regain access to these funds.
To say this is unexpected is an understatement. Ben Chow had to resign from Meteora over the scandal, and global arrest warrants targeted Hayden Davis. However, presiding Judge Jennifer L. Rochon warned that Burwick’s lawsuit may fail altogether.
This caused LIBRA to briefly spike, but it soon crashed again:
“Crime is Legal Now” and Crypto Cynicism
This case is still ongoing, but a few things might explain this setback. The LIBRA scandal sent shockwaves through Argentina’s crypto community, creating huge institutional pressure, but President Milei apparently evaded consequences.
Compared to this effort, Burwick’s class-action civil suit was comparably tiny. Why should it succeed when the Argentinian judicial system seemingly failed?
Still, the crypto community has been displeased, especially in light of a guilty verdict for Roman Storm. The phrase “crime is legal now” has been reiterated as observers watched in disbelief:
In other words, the LIBRA scandal could end with no real consequences for any of the perpetrators. The battle hasn’t been resolved, and more relevant details may come to light.
Still, incidents like this can contribute to a culture of cynicism in the crypto community. Such a pessimistic attitude could negatively impact future investments, especially regarding meme coins.
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