Stablecoin issuer Circle has frozen two wallet addresses connected to the controversial Libra memecoin, according to blockchain intelligence firm Arkham.
The wallets reportedly held a combined $57.6 million in USDC:
- One wallet contains $44.59 million
- The deployer wallet holds roughly $13 million
The freeze was confirmed through visual data shared by Arkham, showing both wallets inactive with halted token movement.
Circle’s Authority in Emergency Freezes Raises Questions
Circle, like other centralized stablecoin providers such as Tether, has the ability to freeze USDC under emergency or legal circumstances. These powers are typically reserved for:
- Security breaches
- Fraud investigations
- Regulatory enforcement
However, it remains unclear who requested the freeze, and no official statement has been made by Circle at the time of writing.
Libra’s Fallout and Community Reaction
The memecoin, originally launched amid intense social media hype, quickly became controversial. Allegations of insider activity, bot manipulation, and developer profiteering have tainted the project.
Arkham’s dashboard visualization appears to confirm the halted flow of funds from key wallets involved in the initial token distribution and liquidity activities.
This marks one of the largest known USDC freezes tied to a memecoin incident, signaling increased oversight on questionable crypto projects.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/circle-freezes-57-6m-in-usdc-linked-to-libra-memecoin-scandal/