Circle’s $57M USDC Freeze on $LIBRA Team: Crypto Scandal or Strategic Crackdown?
Circle freezes $57M in USDC linked to the $LIBRA team amid suspicions of a scam, shaking Argentina’s crypto scene. Is this a protective move or a blow to investor trust? Uncover the drama behind this bold action!
On May 28, 2025, Circle, the issuer of USDC, froze $57 million in stablecoin funds tied to the $LIBRA token team, per posts on X. This follows a February 2025 scandal where $99 million in USDC and SOL was withdrawn from $LIBRA’s liquidity pool, linked to eight wallets associated with the token’s creators, per Reuters. The token, briefly promoted by Argentina’s President Javier Milei before a deleted X post, surged to $4.50 before crashing, prompting a federal investigation into its launch.
Circle’s freeze, likely triggered by suspicious activity, mirrors its 2023 actions against Multichain’s $63 million hack, where it blacklisted wallets to halt illicit transfers. The $LIBRA case raises questions about centralized stablecoin control, as Circle’s ability to freeze funds highlights both security and trust issues. For beginners, this underscores the risks of unregulated tokens and the importance of due diligence. While $LIBRA’s remaining $87 million in wallets suggests partial recovery potential, per Nansen, volatility and legal scrutiny loom. Investors should use trusted platforms, enable security measures, and diversify to avoid similar pitfalls.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
