Libra Token Insiders Drain Millions From Failed Meme Coin to Buy the Solana Dip Amid Probe
Wallets linked to the failed Libra (LIBRA) meme coin are nonetheless transferring funds throughout blockchains regardless of a number of asset freezes, ongoing fraud investigations, and mounting authorized stress in each the United States and Argentina.
New on-chain information exhibits that insiders tied to the undertaking have withdrawn hundreds of thousands from the collapsed token and rotated the proceeds into Solana throughout the latest market correction.
Fresh Wallet Movements Renew Scrutiny as Libra Insiders Redirect Millions Into Solana
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,” eliminated practically $4 million in liquidity from the LIBRA ecosystem earlier than deploying the funds into Solana.
Data shows that the Libra Deployer pockets held a further $13 million in USDC earlier than the transfer, whereas the “61yKS” pockets managed roughly $44 million in USDC on Monday.
The continued pockets exercise has raised recent questions on how a lot management investigators have over the undertaking’s remaining funds.
During LIBRA’s collapse earlier this 12 months, at least eight insider wallets cashed out roughly $107 million in liquidity, contributing to a speedy $4 billion market-cap wipeout inside hours.
The undertaking’s dramatic surge and crash have been 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 earlier than it plunged by greater than 94%.
The aftermath has since triggered investigations throughout a number of jurisdictions. In the United States, a federal decide froze $57.6 million in USDC in May as a part of a class-action lawsuit accusing Kelsier Ventures and its three co-founders, Gideon, Thomas, and Hayden Davis, of deceptive traders.
Judge Jennifer Rochon later unfroze the funds in August, ruling that traders wouldn’t endure irreparable hurt as a result of the cash remained recoverable.
Even with the freeze lifted, pockets actions counsel that parts of the undertaking’s liquidity are nonetheless being moved into new property, with insiders now shifting from memecoin deployments to larger-cap altcoins akin to Solana.
Federal Judge Freezes Assets in Argentina as Libra Insider Scandal Deepens
Meanwhile, Argentina’s investigation into the scandal has intensified.
On November 11, federal decide 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.
Argentina freezes $507K in $Libra Meme Coin case linked to President @JMilei, suspecting oblique funds to officers. #Libra #Argentina #memecoin
— Cryptonews.com (@cryptonews) November 11, 2025
Prosecutors estimate that investor losses tied to the case fall between $100 million and $120 million.
Authorities allege that the trio labored alongside lobbyists Mauricio Novelli and Manuel Terrones Godoy to convert crypto into fiat for Davis and different insiders, forming a so-called “monetary den.”
Court filings present that a number of transactions tied to the group have been tracked throughout Arbitrum, Avalanche, and Solana, pointing to what analysts consider was a coordinated insider scheme.
One switch flagged by investigators concerned $507,500 despatched by the Bitget change simply 42 minutes after Milei posted his selfie with Davis.
Prosecutors say the transaction might signify oblique funds to public officers routed by intermediaries to obscure the origin of the funds.
The scandal has carried political fallout in Argentina, regardless that the country’s anti-corruption watchdog later cleared Milei of wrongdoing.
Argentina has dominated that President @JMilei didn’t violate public ethics legal guidelines when he supported the LIBRA memecoin earlier this 12 months.#Libra #Argentinahttps://t.co/Eqhg9fdMI5
— Cryptonews.com (@cryptonews) June 9, 2025
Polling by Zuban Córdoba confirmed his approval ranking slipping from 47.3% in November to 41.6% in March.
Despite the dip in public sentiment, Milei’s pro-crypto occasion, La Libertad Avanza, secured a strong result in midterm elections, taking greater than 40% of the nationwide vote and profitable key areas, together with Buenos Aires province.
Analysts observe that the ongoing transfers, mixed with previous insider habits round the MELANIA and WOLF memecoins, match a broader sample of speedy token launches, leveraged hype, and swift liquidity extraction.
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