- Circle froze two Solana wallets tied to the Libra meme coin team, locking nearly $58 million in USDC.
- The Libra token previously triggered a political scandal involving Argentine President Javier Milei.
- The event raises renewed concerns over centralized control in decentralized financial systems.
The Libra memecoin scandal has been going on since the beginning of this year.
In a significant development stemming from the scandal, stablecoin issuer Circle blockchain has “frozen” two Solana-based wallets.
The wallets containing nearly $58 million in USDC, are reportedly linked to the team at the center of a political storm in Argentina.
According to data from Solana block explorer Solscan, the “frozen wallets” hold $44.59 million and $13.06 million in USDC, a U.S. dollar-pegged stablecoin issued by Circle.
Political Scandal
Libra meme coin had a controversial launch earlier this year .
The token gained notoriety after being associated with Argentine President Javier Milei, sparking a political scandal in both national politics and the global cryptocurrency community.
While Circle has not issued a public statement on the matter, the action has been attributed to a temporary restraining order reportedly filed by crypto-specialized firm Burwick Law.
Decentralized but Centralized: An Oxymoron
As of now, it remains unclear who exactly initiated the freeze, with multiple parties taking credit across social media.
Martin Romeo, a plaintiff in Argentina’s legal case against the Libra token and a vocal critic of its ties to the Milei administration, claimed the freeze was carried out at the request of Argentina’s Justice Department.
The tokens are now immovable, raising further questions about decentralization and the control centralized issuers hold over blockchain assets.
Circle’s ability to freeze USDC, similar to actions taken during major crypto incidents such as the Bybit hack earlier this year, has reignited debate over the centralized control of stablecoins.
Critics argue that such freezes contradict the principles of decentralization.