A US federal judge unfroze $57.5 million for LIBRA promoters Hayden Davis and Ben Chow, causing the meme coin to briefly surge. Judge Rochon warned that the lawsuit against them could completely fail.
Not all details have been revealed yet, but the crypto community found it hard to believe. After President Milei dissolved the task force investigating him, LIBRA promoters may not face ongoing consequences.
Major Twist in LIBRA Lawsuit
A few months ago, the LIBRA meme coin turned into a massive scandal in Argentina. Rug pull allegations implicated President Milei and several cabinet members.
In contrast, the lawsuit by Berwick Law against two promoters, Hayden Davis and Ben Chow, was a secondary event, but with an unexpected twist.
According to court reports, a US federal judge unfroze the assets of meme coin promoters, throwing the LIBRA case into confusion.
In May, Berwick Law's class action became a federal case, and the court froze $57.5 million in USDC. Davis and Chow can now access these funds again.
Saying this was unexpected is an understatement. Ben Chow had to resign from Meteora, and Hayden Davis was the subject of an international arrest warrant. However, Presiding Judge Jennifer L. Rochon warned that Berwick's lawsuit could completely fail.
This caused LIBRA to surge briefly before falling again:
'Crime is Now Legal'... Crypto Cynicism
The case is still ongoing, but several things can explain this frustration. The LIBRA scandal shocked Argentina's crypto community and created massive institutional pressure. However, President Milei seems to have avoided consequences.
Compared to these efforts, Berwick's class action was relatively small. Why should it succeed in a situation where the Argentine judicial system appears to have failed?
Nevertheless, the crypto community expressed dissatisfaction. Especially in light of Roman Storm's guilty verdict, the phrase "crime is now legal" was repeated. Observers found it hard to believe:
Two weeks after Roman Storm was found guilty for simply building Tornado Cash, Hayden Davis and Ben Chow are one step closer to walking away as free men
โ Squiffs (@Squiffs_) August 20, 2025
Absolutely disgusting behavior from the judicial system https://t.co/0cDvwbBRH8
In other words, the LIBRA scandal may end without substantial consequences for the perpetrators. The battle is not resolved, and more related details may emerge.
Nevertheless, such events can create a cynical culture in the crypto community. This pessimistic attitude could negatively impact future investments, especially regarding meme coins.
