Wallet addresses associated with the controversial LIBRA token are still pulling funds from the failed meme coin and rotating them into other cryptocurrencies, despite asset freezes and ongoing fraud investigations.
A wallet associated with Argentina’s President Javier Millay’s controversial Libra token withdrew nearly $4 million in liquidity from the memecoin to buy the plummeting price of Solana (SOL).
After the exit, two crypto wallets associated with the Libra team acquired $61.5 million worth of SOL at an average price of $135, according to blockchain data platform OnChainLens.
The Solana purchase was made through two addresses identified by blockchain intelligence firm Nansen. “Defcy” labeled “Libra Deployer” and “61yKS” labeled “Libra: Wallet.”
On Monday, before the $4 million withdrawal and before the funds were used to purchase SOL, the Libra Deployer wallet held an additional $13 million in USDC (USDC), and on Monday, the Libra wallet “61yKS” held $44 million in USDC.
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During the Libra token collapse, eight insider wallets liquidated $107 million in liquidity, resulting in $4 billion in market capitalization being wiped out within hours.
Argentine lawyer Gregorio Dalbon called for an Interpol Red Notice to be issued against Libra founder Hayden Davis, citing “procedural risks” if Davis remained free and said he could have access to so much money that Davis could flee the United States.
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Libra wallet continues to drain liquidity
Despite ongoing investigations and previous asset freezes, wallet addresses associated with the Libra scandal continue to siphon liquidity and funnel it into new digital assets.
In May, U.S. Judge Jennifer Rochon froze $57.6 million in USDC in a class action lawsuit against crypto venture firm Kelsher Ventures and its sibling co-founders Gideon, Thomas, and Hayden Davis for misleading investors through the creation of the Libra token.
However, on August 21, Judge Rochon lifted the freeze on the $57.6 million, saying the defendants had not caused “irreparable” harm because there were still funds available to repay the victims.
Libra creator Davis was also the co-creator of the official Melania meme (MELANIA) and the Wolf of Wall Street themed WOLF meme coin. Davis launched a Wolf of Wall Street-themed meme coin with over 80% insider supply, and the token crashed 99% within two days.
The latest wallet activity shows the Libra Deployer wallet is moving from insider meme coin launches to exploring altcoin opportunities during the current market correction.
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