Circle Freezes $57 Million USDC in LIBRA Memecoin Fraud Case

May 28, 2025

What to Know:

Circle freezes $57 million USDC due to LIBRA memecoin fraud.
Freeze impacts multi-asset wallets including ETH, USDT.
Compliance actions raise debates on stablecoin centralization.

circle-freezes-57-million-usdc-in-libra-memecoin-fraud-case — Circle Freezes $57 Million USDC in LIBRA Memecoin Fraud Case

Circle has frozen $57 million in USDC assets linked to the LIBRA memecoin project amid a major fraud investigation involving the assets.

This freeze stresses regulatory scrutiny on stablecoins, impacting crypto market liquidity and prompting debates on centralization.

Circle Implements $57 Million Freeze in Fraud Scandal

Circle, led by CEO Jeremy Allaire, has implemented a freeze following court orders. Authorities are scrutinizing LIBRA memecoin project leaders, examining financial transactions linked to “Milei”.

The freeze involves significant sums, marking one of the largest court-ordered actions in crypto scams to date. Circle’s past actions demonstrate quick compliance with judicial mandates.

Market Liquidity Impacted by $57 Million USDC Freeze

Freezing $57 million in USDC has affected the market by reducing liquidity and transferability. The action has sparked discussions within the crypto community regarding stablecoin custodians’ power.

Financial implications relate to the immediate liquidation constraints and debates around the balance between regulation and decentralization in the digital asset sphere. Nearly $3 million in USDC has been locked in a wallet flagged for suspicious activity, raising eyebrows and sparking discussions about crypto security and the role of stablecoins in the ecosystem.” – MistTrack, Crypto Compliance Monitor

Scale of Freeze Unprecedented in Memecoin Fraud

While past asset freezes, including $3 million in March 2025, occurred, this freeze is notable for its scale and its connection to memecoin-related frauds.

Experts foresee continued scrutiny of stablecoins under regulatory lenses, hinting at potential shifts in compliance tactics amid the growing importance of asset security.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.

John Kojo Kumi

John Kojo Kumi is a seasoned cryptocurrency and blockchain writer celebrated for his in-depth analysis of emerging startups, tokenomics, and crypto market trends. With a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, John offers a unique perspective that integrates academic knowledge with industry expertise.

Throughout his career, John has made significant contributions to Crypto News Flash, ZyCrypto, and Coinstaker Media, where he sharpened his skills in crypto journalism and blockchain analysis. Now at Bitcoininfonews.com, he provides comprehensive coverage of cryptocurrencies, DeFi, NFTs, and Web3, equipping readers with the insights needed to navigate the fast-paced blockchain ecosystem. His expertise in content management, SEO, and thorough research makes his work a trusted resource for the global crypto community