U.S. Frees Libyan Defector's Frozen Assets

The Obama administration sweetened the pot for a major defector from Moammar Gadhafi's regime, releasing recently frozen assets for the former Libyan foreign minister and sending a message to others considering bolting from the fracturing government.

The Treasury Department announced today on its blog it has taken Musa Kusa's name off the list of Gadhafi family and associates whose financial assets were frozen last month.

"One of the intended purposes of sanctions against senior officials in the Libyan government was to motivate individuals within the Gadhafi regime to make the right decision and disassociate themselves from Gadhafi and his government. And today’s announcement shows the ability of sanctions to advance our national security and foreign policy goals and objectives," wrote David Cohen, acting under secretary of the Treasury for terrorism and financial intelligence.

"Kusa's defection and the subsequent lifting of sanctions against him should encourage others within the Libyan government to make similar decisions to abandon the Gadhafi regime," Cohen added.

The Obama administration froze the assets of Libyan officials ahead of air strikes against Gadhafi's military and strategic communications targets.

U.S. Aims Sanctions & Tough Talk at Gadhafi

Updated 11:50 p.m. est

Declaring it "a national emergency," President Obama issued an executive order tonight, freezing assets of Moammar Gadhafi, his sons, senior Libyan government officials and anyone found to be complicit in the violent crackdown on Libyan protesters.

In a letter to the leaders of Congress, Obama wrote, "I have determined that the actions of Col. Muammar Qadhafi, his government, and close associates, including extreme measures against the people of Libya, constitute an unusual and extraordinary threat to the national security and foreign policy of the United States. The order declares a national emergency to deal with this threat."

The unilateral action comes as the U.S. prepares to join allies in other coordinated sanctions expected to be imposed on the Libyan despot.

"Going forward, the United States will continue to closely coordinate our actions with the international community, including our friends and allies, and the United Nations," Obama said in a separate statement issued along with the executive order. "We will stand steadfastly with the Libyan people in their demand for universal rights, and a government that is responsive to their aspirations. Their human dignity cannot be denied."

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Earlier in the day, White House spokesman Jay Carney announced the sanctions would be forthcoming, using the strongest language to date to slam Gadhafi, apparently having waited for Americans to be evacuated from Libya before lashing out.

"It's clear that Colonel Gadhafi has lost the confidence of his people.  He is overseeing the brutal treatment of his people, the fatal violence against his own people, and his legitimacy has been reduced to zero in the eyes of his people," Carney said.

The Obama administration spent the day working out the details of the sanctions, including ending limited coordinated military activities between the U.S. and Libya.

"Consistent with the President's tasking to the government to prepare options to hold the Libyan government accountable for its violation of human rights, we have decided to move forward with unilateral sanctions which we are in the process of finalizing, coordinated sanctions with our European allies, and multilateral efforts to hold the Libyan government accountable through the United Nations," Carney said.