Circle freezes USDC on Solana connected to $LIBRA rug.

Stablecoin issuer Circle has frozen roughly $57–58 million in USDC held in two Solana wallets tied to the controversial LIBRA memecoin launch, after a court order in connection with alleged fraud surrounding the token sale. The blacklisting of these addresses prevents the USDC from being moved or spent and is one of the largest enforcement actions Circle has taken on-chain to date. According to blockchain analytics firm Arkham and multiple media reports, the two Solana addresses labeled "Libra" and "Libra Deployer" collectively hold about 44.6 million and 13.0 million USDC, respectively, representing a large portion of proceeds from the Solana-based LIBRA token’s February launch. The token reportedly surged to a multi‑billion‑dollar fully diluted valuation before collapsing by nearly 90%, sparking accusations of a pump‑and‑dump in which insiders allegedly cashed out while later buyers were left with heavy losses. The freeze was executed pursuant to a temporary restraining order from a U.S. federal court, requested by Burwick Law on behalf of plaintiffs and linked to broader legal disputes and investigations involving LIBRA, including proceedings in Argentina. The incident underscores two key dynamics in contemporary crypto markets. First, it illustrates the extent of control centralized stablecoin issuers such as Circle retain over ostensibly permissionless assets: USDC can be blacklisted at the contract level on supported chains like Solana in response to legal orders or compliance requirements, directly impacting token liquidity and recoverability of alleged scam proceeds. Second, the LIBRA case highlights growing legal and regulatory scrutiny of memecoins and high‑velocity token launches, where rapid appreciation followed by sharp collapses can trigger civil litigation, cross‑border investigations, and asset freezes targeting project teams and associated wallets.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• Circle Freezes $57M of LIBRA's USDC - Arkham | Research (info.arkm.com)
• Circle Freezes $57M of USDC Linked to Libra Scandal - Unchained (unchainedcrypto.com)
• Circle Freezes $58 Million in USDC Linked to Libra Meme Coin on ... (binance.com)
• Circle Freezes $58 Million Related to LIBRA Memecoin Scam (thedefiant.io)

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