Circle freezes $57.5M in USDC tied to LIBRA promoters amid ongoing Argentinian criminal probes and U.S. civil suits, with unclear triggers.
Regardless of the circumstances, this action is a significant setback for the LIBRA team. Top-level Argentinian government officials, such as President Milei, may or may not be subject to severe repercussions; however, crypto entrepreneurs are afforded significantly less protection.
Circle froze LIBRA Assets
The LIBRA debacle, which occurred in February, was a significant scandal in the crypto industry, purportedly involving a sitting chief of state. Many LIBRA promoters are also facing charges even though President Milei is personally under scrutiny.
Circle locked $57.5 million in the LIBRA team’s USDC holdings earlier today, which is a substantial increase.
Circle, one of the largest stablecoin issuers, has suspended user assets numerous times in addition to LIBRA. However, the precise reason for the organization’s decision to implement this drastic measure remains uncertain.
Some local journalists have concluded that Circle’s actions were precipitated by Argentina’s legislature and judiciary investigating the scandal.
Nevertheless, there is a competing narrative that is credible. The allegations against LIBRA promoters in Argentina are extremely severe; however, Circle is an American company.
Its headquarters are in New York City, where Burwick Law is pursuing a civil lawsuit against non-Argentine LIBRA participants. Burwick’s lawsuit has lately been transferred to federal jurisdiction and is currently making further advancements:
In other terms, this federal lawsuit filed in the United States may have incited Circle to freeze the USDC of LIBRA promoters. At present, Circle has not issued a statement, and neither party has officially acknowledged the origin of the action.
Concrete evidence is not yet available to verify either theory.
Indeed, it is feasible that Circle was motivated to take action by either or both of these legal disputes. The result is consistent, regardless of the circumstances: the promoters of LIBRA are experiencing a tightening of the noose.
Private crypto entrepreneurs are afforded significantly less protection than Argentina’s highest-ranking government officials, regardless of whether they will be subject to criminal penalties.
