Libra Token and Asset Unfreezing

Assets linked to the Libra token, launched in February and backed by Argentine President Javier Milei, have been unfrozen by a Manhattan federal judge. Judge Jennifer L. Rochon stated that she believes the defendants, Hayden Davis and Ben Chow, are not likely to abscond with the funds, given their compliance with court proceedings.

In June, the judge had previously frozen $57.6 million in USDC as plaintiffs sought over $100 million in damages. On Tuesday, Judge Rochon lifted the freeze, noting that the defendants had not acted evasively and that available monetary damages could compensate the plaintiffs.

The judge expressed skepticism about the plaintiffs’ chances of success in their case against Davis and Chow, who are accused of misleading investors regarding the promotion of the Solana meme coin Libra (LIBRA). Despite the plaintiffs’ claims of irreparable harm, the court found insufficient evidence of wrongdoing.

Davis’s legal team described the case as meritless, while Chow’s attorney stated that they look forward to seeking dismissal of the lawsuit. Initially, LIBRA had a market capitalization of $1.17 billion before plummeting 97% to $33 million. While promoted as a funding tool for small businesses in Argentina, it was never the official token of the country.

Allegations of insider trading and subsequent actions, including the deletion of President Milei’s promotional post, led to the token’s rapid decline. Davis attempted to clarify his role amid the controversy, while Chow resigned from his position at Meteora, citing poor judgment.

Now, both Davis and Chow aim to clear their names following this chaotic episode.