The Libra scandal has returned to headlines again, after a U.S. federal judge unfroze $57.6 million in stablecoins connected to the case. The assets were tied to memecoin promoter Hayden Davis and former Meteora exchange CEO Ben Chow.
Judge Jennifer L. Rochon had previously frozen the funds as part of a class-action lawsuit. This week, however, she reversed the order and cited the defendants’ cooperation as one of her reasons for doing so.
Why the Judge Lifted the Freeze
According to court records, the wallets still hold $13.06 million and $44.59 million in USDC, and the decision came after months of hearings. In May, Rochon froze the funds to prevent possible asset flight after plaintiffs argued that Davis, Chow and their partners misled investors in the Libra project.
By August, however, Rochon noted that the defendants had not acted like “evasive actors.” They complied with legal proceedings, and Rochon said, “It is plain that money damages would be available.”
CRIME IS LITERALLY LEGAL
A judge just unfroze $57M USDC from $LIBRA collapse
Why?
> Hayden Davis and B.C. aren’t "evasive"
> No proof of irreparable harm
> Case likely won’t succeedHayden Davis now has legal access to the fundshttps://t.co/3yUIVwW4vf pic.twitter.com/YklZsyptQL
— Bubblemaps (@bubblemaps) August 20, 2025
Lawyers for the defence celebrated the move.
Mazin Sbaiti, who represented Davis, called the case “meritless” and said no evidence linked his client to investor losses. Chow’s attorney, Samson Enzer, said the same thing and described the claims as “untested and meritless.”
The Rise and Fall of Libra
The Libra token launched in February of this year, amid heavy promotion. Some of its earliest promoters were Argentine President Javier Milei, who endorsed the token on social media.
The project was marketed as a way to support small businesses in Argentina, explaining the president’s involvement.
Likely because of Milei, investor enthusiasm shot up, with Libra’s market cap briefly hitting a staggering $1.17 billion according to DEX Screener.
Within 24 hours, the token collapsed by 97 per cent and left only $33 million in value.
Such a brutal crash created immediate outrage from investors and set off one of the largest rug pull scandals in crypto history.
Political Fallout for Javier Milei
Milei quickly distanced himself from Libra after the crash. He deleted his social media post and insisted he had no formal ties to the project.
“A few hours ago, I posted a tweet supporting a supposed private venture with which I have no connection,” Milei said in February.
Hace unas horas publiqué un tweet, como tantas otras infinitas veces, apoyando un supuesto emprendimiento privado del que obviamente no tengo vinculación alguna.
No estaba interiorizado de los pormenores del proyecto y luego de haberme interiorizado decidí no seguir dándole…
— Javier Milei (@JMilei) February 15, 2025
Despite his denial, Argentine lawmakers launched an ethics investigation. Some even pushed for impeachment. Milei later dissolved the investigative task force without charges, which caused separate claims of a political cover-up.
Hayden Davis and Ben Chow’s Role
Hayden Davis, founder of Kelsier Labs, was the public face of Libra. He set himself up as Milei’s advisor and claimed he acted as custodian of project funds. After the crash, however, investors accused him of holding a $100 million “bag” of worthless tokens.
Ben Chow, co-founder of Meteora, on the other hand, also became entangled in the issue.
Meteora’s infrastructure was used to launch Libra, and Chow had introduced Davis to other crypto projects, including Melania Trump’s meme coin. On-chain research by Bubblemaps later revealed wallet connections between the Melania and Libra launches.
Overall, despite the Libra issue, the scandal itself is still unresolved. The class-action suit is still ongoing, and investors are still seeking restitution. Whether the case succeeds will determine if victims can recover their funds or if Davis and Chow walk away as free men.
