Federal Court Unfreezes $57M in Frozen Crypto Assets Held by LIBRA Token Promoters

New York, NY August 19, 2025 – In a major development for the cryptocurrency community, the United States District Court for the Southern District of New York vacated a temporary restraining order (TRO) that had previously frozen approximately $57 million in assets allegedly controlled by Hayden Davis, Chief Executive Officer of venture-capital firm Kelsier Labs LLC, and Ben Chow, founder of Meteora. Dallas-based counsel Mazin A. Sbaiti and George M. Padis of Sbaiti & Company PLLC, together with co-counsel Chris Armenta of M. Cris Armenta PC, successfully persuaded the district court to vacate the ex parte TRO and deny the plaintiffs’ motion for a preliminary injunction.

Demonstrated Compliance and Strategic Defense The court’s decision follows nearly three months of aggressive litigation, during which the defense team demonstrated that Mr. Davis had fully complied with all court orders and that no assets had been dissipated.  U.S. District Judge Jennifer L. Rochon’s ruling not only unfreezes the assets but also casts doubt on the plaintiffs’ claims: at the hearing, Judge Rochon added that she is “skeptical” about the likelihood that the plaintiffs, represented by Burwick Law, will succeed in their case.

Allegations Strongly Contested The plaintiffs had alleged that Kelsier Ventures and Mr. Chow engaged in a “sophisticated market manipulation scheme” involving the Libra token, leveraging high-profile endorsements to mislead investors—allegations our clients vigorously deny. Sbaiti & Company PLLC continues to assert that the plaintiffs’ claims are meritless.

A Major Milestone for Crypto Innovators “This ruling is a testament to our firm’s commitment to defending innovators, including those in the digital asset space, against overreaching and unsubstantiated claims,” said Mazin A. Sbaiti, lead counsel for Mr. Davis. “We are proud to have protected our client’s rights and assets, and we stand ready to defend other cryptocurrency developers and investors facing similar challenges.”

Next Steps The defense team plans to file motions to dismiss the case in its entirety in late September.

Omar Hurlock et al. v. Kelsier Ventures et al., case number 1:25-cv-03891, in the U.S. District Court Southern District of New York.

More information regarding the new development in the Libra Token case can be found here.

About Sbaiti & Company PLLC

Sbaiti & Company PLLC is a leading boutique litigation firm with a proven track record in high-stakes commercial disputes, representing both plaintiffs and defendants, including increasingly in the digital currency community. We are committed to protecting our clients’ interests, fostering innovation, and ensuring fair treatment under the law. For more information, please visit www.sbaitilaw.com.