Circle, the company behind the popular stablecoin USD Coin (USDC), has frozen nearly $58 million worth of cryptocurrency associated with the ongoing LIBRA memecoin scandal. This action marks a significant development in one of 2025’s most high-profile crypto controversies as legal and political ramifications continue to unfold. Blockchain analytics firm Arkham reports that Circle used its multisig authority to freeze two Solana (SOL) wallets linked to the Libra token’s deployer and project team. These frozen accounts, containing $57.65 million in USDC, are tied to a class-action lawsuit filed in March in the Southern District of New York, where hundreds of investors are seeking financial compensation. The lawsuit alleges that the libra token, launched in February 2025, experienced dramatic volatility following its promotion by Argentine President Javier Milei. Despite initial gains fueled by social media hype and high market capitalization exceeding $4 billion within hours, the token’s price subsequently crashed by over 90% after insiders, allegedly controlling a majority of supply, dumped significant portions, causing substantial losses for retail investors. Political turmoil has erupted in Argentina, with calls for President Milei’s impeachment following his deletion of promotional posts and denial of involvement. A government task force was formed to investigate but disbanded on May 19th. Circle’s freezing action demonstrates a growing trend among US courts and regulators to act swiftly to protect investors and potentially hold crypto founders accountable for misleading the public and profiting from hype-driven markets.