- A New York judge lifted a temporary restraining order freezing the contested assets under the Libra token scandal.
- The creators of LIBRA were in the same team that handled the development and launch of the controversial MELANIA token.
The Supreme Court of the State of New York at the County of New York overturned an earlier decision to freeze the Libra (LIBRA) tokens linked to the creators of the Melania (MELANIA) meme coin. The presiding judge credited the cooperation of the defendants for the favorable ruling.
According to reports, Judge Jennifer Rochon allowed Hayden Davis, Ben Chow, and other defendants access to $57.6 million worth of USDC tokens, lifting a previous temporary restraining order (TRO). In addition, the judiciary ordered the release of 500 million LIBRA tokens in monthly increments in favor of the respondents.
The latest developments led to LIBRA rising from a $0.008929 low to a $0.01955 high in the last 24 hours, representing roughly 119% fluctuation in the cryptocurrency’s price. As of 6:00 AM UTC, the token has already undergone a pullback at the $0.011 zone, while trading volume showed a significant boost by 48% to $62K.
The Libra Case in New York
Rochon froze the Libra assets of token creators Hayden and Chow in February following a class-action lawsuit from investors. The filing came hot on the heels of the fallout of the Libra fiasco after a rug pull incident connected to Argentine President Javier Milei.
Milei’s involvement was due to his endorsement of the token, saying, “This private project will be dedicated to encouraging the growth of the Argentine economy.” The populist Argentine president’s statement contributed to LIBRA skyrocketing to $3.28 per unit on February 15, with its market cap peaking at $4.4 billion before the eventual crash.
Nansen Research estimated that 86% of LIBRA holders lost over $251 million in the immediate aftermath of the rug pull incident. However, some pocketed $180 million in profits along the way.
Even Barstool founder David Portnoy initially lost $6.3 million during the event, but Hayden refunded him $5 million. Milei distanced himself from the project and ordered a probe into the scandal after public backlash, but eventually dismantled the investigating team after the Argentine government determined that it had already “fulfilled the task entrusted to it.”
Meanwhile, victims of the price manipulation in the US took their grievance to the court, accusing Melana coin creators Hayden and Chow of having an active hand in the debacle. The plaintiffs, represented by Omar Hurlock, sought over $100 million in damages from the defendants.
The developments do not mean an end to the case yet, nor do they rule out the defendants’ possible accountability in the Argentine jurisdiction. Nevertheless, Roche stated that the plaintiffs failed to prove that Davis’ group had caused them “irreparable” harm, as the funds to reimburse the victims haven’t moved since the incident. Furthermore, given the circumstances, she doubts whether the class-action lawsuit would succeed.
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