Little-known cryptocurrency Libra grew by 409% in a week

Editor’s note: not financial advice!

A US federal court has unblocked more than $ 57 million in USDC stablecoins associated with the Libra token. These funds were frozen in May as part of a class action lawsuit by investors seeking more than $ 100 million in compensation after the project’s collapse. Judge Jennifer L. Rochon of the Southern District of New York said there was no reason to continue to hold the assets in custody because the defendants had not tried to hide or transfer the funds.

The two wallets in question belong to crypto entrepreneur Hayden Davis and former Meteora CEO Ben Chow. Although the blocking has been lifted, the trial is ongoing. Chow’s lawyer called the charges «unverifiable» and announced a motion to dismiss the case. The release of funds allows the defendants to raise resources to prepare a defense.

Following this news, the LIBRA token rose sharply in price. Over the past day, it has risen by almost 393%, and over the past week — by more than 409%. At the time of publication, its value was $ 0.043 with a daily trading volume of $ 70 thousand. This was an unexpected jump after the token’s collapse in February, when it lost more than 97% of its value in just a day.

At the start, Libra had a peak capitalization of $ 4.56 billion, partly due to a post on social media by Argentine President Javier Milei that gave investors the impression of alleged government support. The post was subsequently deleted, and the token’s price plummeted. After that, Chow left his position at Meteora, and Davis became the public face of the project.

Despite the current surge in activity, Libra continues to be under scrutiny from investigators and investors. The litigation is far from over, and the token’s long-term prospects remain uncertain.