More than $ 57 million in USDC bound by the scales -topping scandal investigation has failed by an American federal court.
Summary
- An American judge will be linked $ 57.6 million in USDC near the Libra -Tokschandaal.
- Judge Jennifer L. Rochon ruled that Davis and Chow had complied with the procedure and were not a risk to hide or move the assets.
- Investors all over the world lost millions when the scales fell.
The funds, originally frozen in May by judge Jennifer L. Rochon of the southern district of New York, were held in two wallets connected to Memecoin promoter Hayden Davis and former Meteora Exchange CEO Ben Chow.
The assets were frozen as part of a Class-Action right case where investors sought more than $ 100 million in compensation with regard to the collapse of the scales.
On Tuesday, judge Rochon told The court no longer sees Davis and Chow as the opportunity to move the assets incorrectly. According to the judge, Davis and Chow remained within the rules of the case and never tried to move or hide the funds while they were locked.
“It is clear that there would be money damage to compensate for the class,” Rochon wrote and noted that the claimants had not shown “irreparable damage” that justify the freezing.
Rochon pointed out that the defendants did not act as ‘evasive actors’, of which she said it was central to her decision to release the assets.
At the same time, the judge made it clear that the case remains at an early stage. She expressed skepticism about the probability of the lawsuit in the class that eventually succeeded, although she stopped rejecting the case.
Chow’s lawyer, Samson Enzer of Cahill Gordon & Reindel LLP, strengthened that position and called the claims of the claimants “unpleasant and deserving” and signal an upcoming motion to have the case throw away.
Libra was launched in February of this year with the support of Davis’ Cushier Labs and Infrastructure of Chow’s Meteora Exchange.
The Cryptocurrency was quickly able to reach a market capitalization of more than $ 4.56 billion, especially after the Argentinian President Javier Milei promoted token on social media as a way to support small companies in the country.
Traders who wanted to observe a fast dollar observed the X-post of Milei as an approval, so that after the launch, a record high reached a record high of more than $ 4.
Less than a day later, however, Libra had lost almost 97% of its value while the market capitalization crashed. Investors began to accuse Davis and Chow of the orchestrate of one of the most notorious carpet tracts in recent memory, while some critics pointed to Milei’s first approval as an important reason why many traders believed that the Argentinian government supported the icing.
Milei was quickly removed his post by regulating the scale and distanced himself from the project, while he insisted that he had no knowledge of the structure or risks.
He characterized his promotion as just a routine part of the social media, but that explanation failed to put in a congress tince.
A congresse probe was launched against Milei and legislators in the country also insisted on accusation procedures. Milei, however, finally closed the investigation and dissolved the Task Force.
Fall -Out and aftermath
Davis appeared as the face of the scandal as soon as the project started to collapse. He then launched a media push, who depicted himself as the keeper of Libra’s funds and even as a consultant to Milei, but the claims only reinforced the recoil against him.
In the meantime, Chow was forced to resign from his role in the decentralized Exchange Meteora, with his pseudonymous co-founder “Miauw” who at the time quoted a bad judgment in the confidence of Davis.
For the time being, the decision of Judge Rochon gives to let go of the funds, both the breathing space of the defendants before the court, the shadow of the scaling accident lingers above the investors who go back.
