Crypto News: Wallets Linked To The Libra Scandal Open Bets On Solana

Here’s how Libra-linked crypto wallets moved millions in USDC to buy Solana during the latest crypto market dip.

There has now been fresh activity across several wallets linked to the failed Libra meme token. These wallets were observed moving large amounts of USDC after long stretches of silence. 

The funds went toward buying SOL during the most recent price dip, and investors are starting to wonder whether Solana has a comeback brewing.

Wallets Linked To Libra Resume Activity

This new movement across the wallets surprised many observers. These wallets had been dormant for months and suddenly became active as SOL dropped below $130. 

Two addresses spent $61.5 million in USDC to buy SOL and one now holds 328,619 SOL. The second accumulated 127,871 SOL with most of the purchases tracked at an average cost of $135 per token.

Notably, some of the funds they spent to buy this SOL came from wallets that moved for the first time since the collapse of the Libra token. 

Liquidity Pulled From DEX Pools And Redirected Into SOL

A wallet labelled as Libra Team 1 pulled USDC from Solana DEX protocols. The wallet then used the stablecoins to buy SOL and wrapped SOL. 

That wallet has a long history and has handled large sums during the rise and collapse of the Libra meme token. It also played a role when the token suffered its infamous rug pull.

The wallet later made several smaller purchases tied to Solana meme tokens. Despite an ongoing class action case, no restrictions have been appled to these wallets. 

Circle, the issuers of USDC has the ability to freeze USDC but has somehow not applied freezes to any of the addresses tied to early Libra activity according to speculators.

Large Holders Across The Network Raised Activity

Whale wallets outside the Libra circle also moved during the dip. One buyer picked up more than $17 million in SOL while holding through an unrealised loss of $8 million. Another whale removed $16.2 million in SOL from Binance and placed the tokens into cold storage.

SOL derivatives also shown the changing mood. 

Open interest climbed above $3 billion after the dip. Long positions reached more than 86% of active positions and many short positions closed or faced liquidation during the move. 

Traders are now tracking two possible paths. A push below $130 could trigger new long liquidations, while a rise to $145 could force a short squeeze.

Related Reading: LIBRA Token Facilitator Hayden Davis Snatches $12M Off Kanye Memecoin YZY

Fresh Details On Wallets Tied To The Libra Token Scandal

Several addresses tied to the Libra event continue to pull money from the failed token and move it into other assets. 

These actions are occurring despite earlier freezes and ongoing fraud claims. 

The failed token gained attention earlier this year after it received support from Argentina’s president Javier Milei. During the collapse, eight insider wallets cashed out $107 million. The crash also erased roughly $4 billion in market value within hours.

Recent reports show that two tracked wallets bought $61.5 million of SOL at $135 each. Nansen flagged the addresses Defcy (labelled as Libra Deployer) and 61yKS (labelled as Libra Wallet). 

Before the purchases, the Libra Deployer wallet held more than $13 million in USDC. The second address held about $44 million in USDC.

A separate case involving Kelsier Ventures also influenced the flow of the funds. A US judge froze $57.6 million in USDC this year. Later, the judge lifted the freeze after concluding that victims could still be reimbursed. 

Hayden Davis, the token creator also faces legal calls requesting an Interpol Red Notice. An Argentine lawyer argued that Davis could flee due to access to large sums.

Davis has also been tied to several other meme token launches, with some of those tokens crashing just as quickly as Libra did. 

One project even held more than 80% insider supply and lost nearly all its value within two days.