Wallet addresses associated with the controversial Libra (LIBRA) token are actively withdrawing funds from the failed memecoin and reallocating them into other cryptocurrencies, even as asset freezes and fraud investigations are ongoing.
These wallets, linked to the Libra token which received an endorsement from Argentine President Javier Milei, have reportedly pulled nearly $4 million in liquidity from the memecoin to capitalize on the recent dip in Solana (SOL) prices.
Following this liquidity withdrawal, two cryptocurrency wallets identified as belonging to the Libra team purchased approximately $61.5 million worth of SOL. The acquisitions were made at an average price of $135 per SOL, according to data from the blockchain analytics platform Onchain Lens.
The Solana purchases were executed through two addresses that blockchain intelligence firm Nansen has identified: one labeled "Libra Deployer" (DefcyKc4yAjRsCLZjdxWuSUzVohXtLna9g22y3pBCm2z) and another labeled "Libra: Wallet" (61yKS). These addresses were traced through their transaction history on the Solana blockchain.
Prior to the $4 million withdrawal that was used to purchase SOL, the Libra Deployer wallet held an additional $13 million in USDC. Concurrently, the Libra Wallet address '61yKS' held $44 million in USDC on Monday, before these funds were utilized for the SOL purchases.
During the dramatic collapse of the Libra token, eight wallets identified as belonging to insiders cashed out a substantial $107 million in liquidity. This action led to a rapid decline in the token's market capitalization, erasing $4 billion within a matter of hours.
Argentine lawyer Gregorio Dalbon has formally requested an Interpol Red Notice for Libra creator Hayden Davis. Dalbon cited a "procedural risk" if Davis remains at large, suggesting he could access significant financial resources that might enable him to flee the United States.
Ongoing Liquidity Drain from Libra Wallets
Wallet addresses connected to the Libra scandal continue to systematically drain liquidity from the token and redirect these funds into new digital assets. This activity persists despite ongoing investigations into the token's origins and previous actions such as asset freezes.
In May, U.S. Judge Jennifer Rochon ordered a freeze on $57.6 million in USDC. This action was part of a class-action lawsuit filed against crypto venture firm Kelsier Ventures and its co-founders, Gideon, Thomas, and Hayden Davis. The lawsuit alleged that they misled investors through the creation and promotion of the Libra token.
However, on August 21, Judge Rochon lifted the freeze on the $57.6 million in stablecoins. The judge's decision was based on the reasoning that the defendants had not caused "irreparable" harm, as the funds necessary to reimburse potential victims were still accessible.
Libra creator Hayden Davis is also recognized as a co-creator of other memecoins, including the Official Melania Meme (MELANIA) and the Wolf of Wall Street-themed Wolf (WOLF) token. Davis launched the Wolf of Wall Street memecoin with an insider supply exceeding 80%, a move that resulted in the token's value plummeting by 99% within just two days of its release.
The recent movements from the Libra deployer wallets suggest a strategic shift. They appear to be moving away from insider memecoin launches and are now exploring altcoin opportunities amidst the current market correction.