Libra Token Insiders Drain Millions From Failed Meme Coin To Buy The Solana Dip Amid Probe
- The continued wallet activity has raised fresh questions about how much control investigators have over the project’s remaining funds.
- The aftermath has since triggered investigations across multiple jurisdictions.
- Judge Jennifer Rochon later unfroze the funds in August, ruling that investors would not suffer irreparable harm because the money remained recoverable.
- Meanwhile, Argentina’s investigation into the scandal has intensified.
What Happened
Wallets linked to the failed Libra (LIBRA) meme coin are still moving funds across blockchains despite multiple asset freezes, ongoing fraud investigations, and mounting legal pressure in both the United States and Argentina.
The continued wallet activity has raised fresh questions about how much control investigators have over the project’s remaining funds.
The aftermath has since triggered investigations across multiple jurisdictions. In the United States, a federal judge froze $57.6 million in USDC in May as part of a class-action lawsuit accusing Kelsier Ventures and its three co-founders, Gideon, Thomas, and Hayden Davis, of misleading investors.
Judge Jennifer Rochon later unfroze the funds in August, ruling that investors would not suffer irreparable harm because the money remained recoverable.
Meanwhile, Argentina’s investigation into the scandal has intensified.
Prosecutors estimate that investor losses tied to the case fall between $100 million and $120 million.
One transfer flagged by investigators involved $507,500 sent through the Bitget exchange just 42 minutes after Milei posted his selfie with Davis.
Analysts note that the ongoing transfers, combined with past insider behavior around the MELANIA and WOLF memecoins, fit a broader pattern of rapid token launches, leveraged hype, and swift liquidity extraction.
Market Context
New on-chain data shows that insiders tied to the project have withdrawn millions from the collapsed token and rotated the proceeds into Solana during the recent market correction.
According to blockchain analytics platforms Onchain Lens and Nansen, two wallets identified as “Defcy,” labeled as the Libra Deployer, and “61yKS,” labeled as “Libra: Wallet,” removed nearly $4 million in liquidity from the LIBRA ecosystem before deploying the funds into Solana.
During LIBRA’s collapse earlier this year, at least eight insider wallets cashed out roughly $107 million in liquidity, contributing to a rapid $4 billion market-cap wipeout within hours.
Even with the freeze lifted, wallet movements suggest that portions of the project’s liquidity are still being moved into new assets, with insiders now shifting from memecoin deployments to larger-cap altcoins such as Solana.
Why It Matters
Prosecutors say the transaction may represent indirect payments to public officials routed through intermediaries to obscure the origin of the funds.
Details
Fresh Wallet Movements Renew Scrutiny as Libra Insiders Redirect Millions Into Solana
Data shows that the Libra Deployer wallet held an additional $13 million in USDC before the move, while the “61yKS” wallet controlled roughly $44 million in USDC on Monday.
The project’s dramatic surge and crash were accelerated by an endorsement from Argentine President Javier Milei, whose public selfie with founder Hayden Davis helped propel the token to a peak valuation of $4.5 billion before it plunged by more than 94%.
Federal Judge Freezes Assets in Argentina as Libra Insider Scandal Deepens
On November 11, federal judge Marcelo Martínez de Giorgi ordered the freezing of more than $507,000 in assets linked to Davis and two regional crypto operators, Favio Camilo Rodríguez Blanco and Orlando Rodolfo Mellino.
Authorities allege that the trio worked alongside lobbyists Mauricio Novelli and Manuel Terrones Godoy to convert crypto into fiat for Davis and other insiders, forming a so-called “financial den.”
Court filings show that multiple transactions tied to the group were tracked across Arbitrum, Avalanche, and Solana, pointing to what analysts believe was a coordinated insider scheme.
The scandal has carried political fallout in Argentina, even though the country’s anti-corruption watchdog later cleared Milei of wrongdoing.
Polling by Zuban Córdoba showed his approval rating slipping from 47.3% in November to 41.6% in March.
Despite the dip in public sentiment, Milei’s pro-crypto party, La Libertad Avanza, secured a strong result in midterm elections, taking more than 40% of the national vote and winning key regions, including Buenos Aires province.
The post Libra Token Insiders Drain Millions From Failed Meme Coin to Buy the Solana Dip Amid Probe appeared first on Cryptonews.