Wallet addresses tied to the controversial Libra (LIBRA) token are still pulling money from the failed memecoin and rotating it into other cryptocurrencies despite asset freezes and ongoing fraud investigations.
The wallets associated with the Libra token — which was controversially endorsed by Argentine President Javier Milei — have withdrawn nearly $4 million in liquidity from the memecoin to buy the Solana (SOL) dip.
After the withdrawal, two cryptocurrency wallets associated with the Libra team acquired $61.5 million worth of SOL at an average price of $135, according to blockchain data platform Onchain Lens.
The Solana purchases were made through two addresses identified by blockchain intelligence firm Nansen: “Defcy,” labeled as “Libra Deployer,” and “61yKS,” labeled as “Libra: Wallet.”
“Libra Deployer” wallet “Defcy,” transaction heatmap. Source: NansenBefore the $4 million withdrawal, the Libra Deployer wallet held an additional $13 million in USDC (USDC), while Libra Wallet ‘61yKS’ held $44 million in USDC on Monday, before the funds were used to buy SOL.
Libra Wallet ‘61yKS’ holdings as of Nov. 17. Source: NansenRelated: Kanye West’s YZY token: 51,000 traders lost $74M, while 11 netted $1M
During the collapse of the Libra token, eight insider wallets cashed out $107 million in liquidity, resulting in a $4 billion market cap wipeout within hours.
Argentine lawyer Gregorio Dalbon has asked for an Interpol Red Notice to be issued for Libra creator Hayden Davis, citing a “procedural risk” if Davis remained free, as he could have access to vast amounts of money that would allow him to either flee the US.
Related: Smart money still hunting for memecoins despite end of ‘supercycle’
Libra wallets keep draining liquidity
Wallet addresses tied to the Libra scandal continue to syphon liquidity and pour it into new digital assets, despite ongoing investigations and previous asset freezes.
In May, US judge Jennifer Rochon froze $57.6 million in USDC in a class-action suit against crypto venture firm Kelsier Ventures and its three sibling co-founders, Gideon, Thomas and Hayden Davis, alleging they misled investors through the creation of the Libra token.
However, Judge Rochon unfroze the $57.6 million on Aug. 21, citing that the defendants did not cause “irreparable” harm because the funds to reimburse victims are still available.
Libra creator Davis was also the co-creator of the Official Melania Meme (MELANIA) and Wolf of Wall Street-themed Wolf (WOLF) memecoin. Davies launched the Wolf of Wall Street-themed memecoin with an insider supply of over 80%, which led to the token crashing by 99% within two days.
Source: BubblemapsThe latest wallet movements indicate that Libra deployer wallets are shifting from insider memecoin launches to exploring altcoin opportunities during the current market correction.
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Source: https://cointelegraph.com/news/libra-wallets-drain-liquidity-buy-solana?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
