Circle Freezes Solana Wallets Tied to Controversial LIBRA Token

• Circle has frozen two Solana wallets linked to LIBRA token developers, holding a total of $57.65M USDC.
• The fund freeze followed a court order amid allegations of LIBRA insiders controlling 70% of its supply.

Circle has just frozen two wallets on the Solana network. Both are directly linked to the development team of the meme token LIBRA, a project that caused a stir in early 2025. A total of $57.65 million in USDC was recorded as being involved in the fund freeze.

JUST IN: @circle freezes $57.6 million worth of $USDC connected to the $LIBRA team. pic.twitter.com/ilUy9FYG83

— SolanaFloor (@SolanaFloor) May 28, 2025

Behind LIBRA’s Hype: A Court Order, Frozen Funds, and Broken Trust

Circle’s decision came after a federal court in Manhattan issued a temporary restraining order. The legal action arose from a class action lawsuit from investors against Kelsier Ventures and its founders, who were later revealed to control the majority of the LIBRA token supply.

The token itself had skyrocketed to a market capitalization of $4 billion, thanks in part to the support of Argentine President Javier Milei. But that’s how rapid increases often… end badly.

Shortly after its hype, LIBRA actually plunged more than 90%. Many investors were hit hard, with collective losses reaching more than $250 million. Meanwhile, those who “played from the inside” are estimated to have pocketed profits of around $150 million.

In the middle of this situation, Circle’s decisive move, which has now frozen access to two major wallets, has become a glimmer of hope for investors. But there are still obstacles. Many are starting to question: if stablecoins can be frozen this easily, to what extent does decentralization really work? Some say, “It’s like driving a sports car but the steering wheel is still controlled by the factory.”

However, for some parties, Circle’s actions are seen as a form of responsibility towards the ecosystem. Moreover, the next hearing to decide the status of these funds is scheduled for June 9, 2025. So, let’s just wait and see whether the frozen funds can be used to replace investors’ losses or will be locked up forever.

Circle Eyes Wall Street Glory

On the other hand, Circle is actually in an aggressive expansion phase. CNF previously reported on the launch of CPN Mainnet by Circle, a blockchain-based cross-border payment system that supports real-time transaction visibility. This platform is even active in several global payment channels and works with many strategic partners.

Furthermore, on May 27, 2025, Circle announced its intention to go public on the New York Stock Exchange (NYSE) with the stock code “CRCL.” They are targeting to raise up to $624 million through this IPO. The stock price offered ranges from $24 to $26 per share, and the company could reach a valuation of around $6.7 billion.

What is exciting is that Cathie Wood’s ARK Investment Management is interested in buying $150 million worth of shares. And not only that, BlackRock is also reportedly ready to buy 10% of the total shares released.

Interestingly, in the middle of all these maneuvers, Circle apparently rejected acquisition offers from two crypto giants: Ripple Labs and Coinbase. Reportedly, the figure proposed at that time was in the range of $4 to $5 billion.