Libra-Linked Wallets Snaps $61.5M in Solana Amid Market Dip

Wallets connected to the controversial Libra memecoin scandal are making surprising moves in the crypto market. Months after the token’s dramatic collapse, nearly $4 million worth has been taken out of the failing Libra ecosystem and quickly invested in Solana (SOL). 

This comes as the crypto market is feeling intense pressure due to ongoing volatility and market sell-off 

Libra Wallets Buy Millions in Solana 

On-chain data recently revealed that two wallets, Libra Deployer (Defcy) and Libra Wallet (61yKS), purchased $61.5 million worth of Solana at an average price of $135. Before these buys, the wallets held $57 million in USDC, ready to be deployed. 

Analysts note that the wallets took advantage of Solana’s dip during the wider market downturn. Meanwhile, the broader crypto market is also under pressure. The flagship crypto Bitcoin (BTC) has fallen below $90,000, trading around $89,390, its lowest since April.

Likewise, Ethereum (ETH) has dropped below its key $3,000 support, confirming a bearish phase, while BNB has slipped under $900. Solana hovers near $130, Dogecoin remains around $0.15, and Cardano trades close to $0.45. 

However, some coins like XRP and Chainlink (LINK) have shown resilience, holding steady above $2.11 and $13.11 respectively. Market analysts pointed to massive outflows from Exchange Traded Funds (ETF), whale-driven short positions, and low market liquidity as drivers of the downturn.

Libra Token Collapse Sparks Investigations, Focus Turns to Hayden Davis

The Libra token fell dramatically in February when eight insider wallets cashed out $107 million, wiping out $4 billion from the market in just a few hours. The collapse drew the authorities and public attention. 

Argentina’s President Javier Milei was caught at the center of the controversy after he promoted a new memecoin. However, the court later cleared him of any wrongdoing. As the investigation intensified, attention was shifted to Hayden Davis, the co-creator of the controversial cryptocurrency. 

Argentine lawyer Gregorio Dalbon even requested a global arrest warrant to be issued against Davis. He feared Davis could use his access to funds to avoid investigations.

Hayden Davis is known for launching controversial tokens. He previously created the MELANIA memecoin and the WOLF token. These digital tokens fell 99% in just two days because insiders controlled over 80% of the tokens.

U.S. Court Lifts $57.6M Freeze as Libra Insiders Shift to Solana

The Libra scandal reached U.S. courts. Judge Jennifer Rochon froze $57.6 million in USDC belonging to Kelsier Ventures and the Davis brothers. The lawsuit claimed that investors were misled through the Libra token. 

By August, the freeze was lifted because the judge ruled that releasing the funds would not harm victims, as reimbursements were still possible.

Despite ongoing investigations and lawsuits, insiders behind the Libra-linked wallets are now shifting focus to buying major altcoins like Solana during market dips.