The lawsuits against the LIBRA token project are heating up once again. Burwick Law has requested the freeze of LIBRA assets in wallets linked to Hayden Davis.
The law firm, one of the main drivers of class-action lawsuits for meme tokens, has requested the additional freezing of LIBRA tokens in wallets linked to the initial team and influencers. The New York Southern District Court has granted an order to limit the trading or transfers of assets from LIBRA team wallets.
The main problem with LIBRA is that even defunct tokens can be active on-chain. LIBRA is entirely permissionless and even continues to trade with vestigial volumes on several exchanges. However, the volumes are not enough to absorb any of the holdings without tanking the price.
LIBRA never recovered, but retail investors seek the proceeds from the initial team sale in the first hours after the launch. | Source: CoinGecko
In the case of LIBRA, the token led to over $250M in user losses, and never recovered from its initial crash. Unlike other meme tokens, LIBRA has lost all confidence, and traders are not touching it even for an irrational pump.
The low volumes mean even the team and initial investors are technically incapable of shedding their assets, unlike other more liquid memes. Additionally, the wallets of Kelsier Ventures have mostly divested their LIBRA, instead holding SOL and USDC, as well as other assets that cannot be frozen.
The request arrives just a day after Circle froze $57M in USDC tokens, making them unmovable on-chain. Further requests have been sent to freeze any remaining USDC in the team and influencer wallets linked to early LIBRA traders.
The requests by Burwick Law also targeted the same USDC wallets which also received a request from an Argentinian court. In that case, Circle was directly contacted and performed the freezing transaction. Circle can then re-issue the USDC, to be used in trader compensation. The Libra Team 1 wallet was one of the affected wallets with a freeze of 13.06M USDC.
LIBRA has a total of 24,519 holders as of May 2025, though most of the tokens are still concentrated in team wallets.
Burwick Law aims to block LIBRA by court order
The request by Burwick Law does not involve any on-chain actions. Instead, the firm has obtained a court order against the usage of crypto held in the wallets of the LIBRA team and associates.
In the case of Hurlock v. Kelsier Ventures et al, Burwick Law obtained a Temporary Restraining Order. For now, it remains uncertain how this order can be implemented on-chain, as the movement of Solana assets is still unrestrained.
The restraining order affects any remaining LIBRA in the team’s wallets, as well as the identified $110M in proceeds, which Burwick Law links to other wallets belonging to Hayden Davis’s Kelsier Ventures.
The court order to ban further transactions is one of the first attempts at recovery for the victims of the meme token. The high profile of LIBRA and its connections to Argentina’s President Javier Milei meant the asset was treated as more than just another meme. LIBRA launched during the peak craze for celebrity and official tokens, managing to bring in up to $250M in investments, before erasing over 90% of its value in minutes.
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