Hurlock v. Kelsier Ventures

Background

Omar Hurlock, on behalf of himself and all others similarly situated, moved for a temporary restraining order and a preliminary injunction concerning specified cryptocurrency assets. The defined assets included $LIBRA cryptocurrency and proceeds from trading it held or controlled by the defendants; approximately $110 million in $LIBRA proceeds controlled by Hayden Davis; and approximately 57,654,371 USDC, along with other $LIBRA proceeds, in two identified cryptocurrency wallets.

The court stated that Hurlock had shown a likelihood of irreparable harm because the assets could easily be dissipated and because the defendants might transfer them. The court also found that the balance of hardships favored Hurlock, based on evidence that the assets represented transfers from $LIBRA purchasers and evidence that the defendants did not have a legitimate interest in the funds. At that stage, the court found that Hurlock had presented sufficiently serious questions about the merits of his claims to make them appropriate for litigation. It also found that restraining the assets served the public interest by preserving them if the litigation resulted in an award to Hurlock or the proposed class.

Order

The court granted temporary relief on an ex parte basis, meaning without advance notice to the defendants, because notice could have allowed the assets to be transferred before the court issued its order or before Circle could freeze the USDC. The court found that the temporary restraint imposed minimal hardship and required only a nominal bond.

Ruling

The court entered a temporary restraining order under Federal Rule of Civil Procedure 65, pending argument and a ruling on the motion for a preliminary injunction. The order barred the defendants, their officers, agents, employees, attorneys, and people acting in concert with them from disposing of, processing, routing, facilitating, selling, transferring, encumbering, removing, paying over, conveying, or otherwise interfering with the defined assets.

The court separately ordered Circle Internet Group, Inc. and Circle Internet Financial, LLC to freeze and deny access to all USDC in the two identified wallets. The defendants were ordered to show cause at a June 9, 2025 hearing why a preliminary injunction should not extend the restrictions during the case. The court set deadlines for opposition and reply papers, ordered Hurlock to serve the complaint and order on the defendants and Circle, required Hurlock to post a $100 cash bond within five days, and directed that related filings be docketed no earlier than one business day after the service date. Judge Jennifer L. Rochon stated that the court's findings were without prejudice to revision after a motion or opposition by the defendants.