Libra Wallets Withdraw $4 Million and Invest Heavily in Solana

Wallet addresses linked to the controversial Libra token have withdrawn nearly $4 million from their liquidity pool and redirected these funds into Solana (SOL) despite ongoing fraud investigations and asset freezes.

Key Takeaways

Wallets associated with the Libra token have pulled $4 million from their liquidity.
The funds were utilized to purchase $61.5 million in Solana at an average price of $135.
Ongoing investigations have frozen assets linked with the Libra project.
Prior to the withdrawal, the Libra Deployer wallet held an extra $13 million in USDC.
Allegations against Libra's creator have led to legal actions and an Interpol Red Notice request.

Wallets tied to Libra scandal pull $4M and bet big on Solana

Libra Wallets Continue to Drain Liquidity

Wallet addresses involved in the Libra controversy remain active in withdrawing liquidity, reallocating funds into new digital assets notwithstanding asset freezes and ongoing investigations. The movement of funds showcases their strategic pivot amid a turbulent market.

In a significant case, U.S. Judge Jennifer Rochon froze $57.6 million in USDC as part of a class-action lawsuit against Kelsier Ventures and its founders—Gideon, Thomas, and Hayden Davis. The lawsuit alleged that they misled investors with the launch of the Libra token. However, the judge later released these funds on August 21, concluding that there was no “irreparable” harm caused, as money was still available to meet victim reimbursements.

Prior to this, the Libra creator, Hayden Davis, was also involved in other memecoins, such as the Official Melania Meme (MELANIA) and the Wolf of Wall Street-themed Wolf (WOLF). It’s worth noting that Davis launched the Wolf token with a supply heavily weighted towards insiders, which caused its value to plummet by 99% in just two days.

Libra Wallet ‘61yKS’ holdings as of Nov. 17. Source: Nansen

What’s Next for Libra Wallets?

The latest movements of these wallets suggest a shift from previous insider memecoin launches to more diversified altcoin investments as the market undergoes corrections.

“Libra Deployer” wallet “Defcy,” transaction heatmap. Source: Nansen

Despite the surrounding controversies and efforts to regulate activities in the crypto space, these developments point to an ongoing trend of liquidity migration among digital assets.

Related: Kanye West’s YZY token: 51,000 traders lost $74M, while 11 netted $1M.

Related: Smart money still hunting for memecoins despite end of ‘supercycle’.

In conclusion, the actions of Libra’s wallets remind us of the complexities surrounding cryptocurrencies and the need for caution as the landscape continues to evolve.