Large onchain movements raise new concerns amid asset freezes, legal disputes, and collapsing token liquidity
Wallets connected to the troubled Libra (LIBRA) token are once again drawing scrutiny after pulling nearly $4 million from the project’s liquidity pools and shifting the funds into Solana, even as fraud probes and legal actions continue. Recent onchain activity shows coordinated accumulation totaling $61.5 million in SOL, signaling a major repositioning by the wallets tied to the project’s core team.
Libra Wallets Accumulate Millions in Solana
According to blockchain analytics platforms, two key addresses long associated with the Libra team executed large purchases of Solana at an average price of $135 per token. These addresses — internally labeled “Libra Deployer (Defcy)” and “Libra: Wallet (61yKS)” — spent a combined $61.5 million after extracting fresh liquidity from the failing memecoin.
Before the transactions, the deployer wallet held roughly $13 million in USDC, while the secondary wallet controlled another $44 million. Analysts say the speed and scale of the rotation suggest a strategic shift.
“This pattern indicates that the wallets involved are no longer focusing on memecoin launches. They appear to be reallocating aggressively into large-cap assets like Solana.”
Liquidity Drains Continue Despite Legal Pressure
The movement comes months after the collapse of the Libra token, during which eight insider wallets withdrew more than $100 million, triggering a catastrophic $4 billion market-cap implosion within hours. The fallout sparked multiple lawsuits, asset freezes, and criminal allegations.
Argentine attorney Gregorio Dalbon recently requested an Interpol Red Notice for Libra creator Hayden Davis, arguing that “there is a clear procedural risk if the defendant remains free with access to substantial funds.”
Earlier this year, a U.S. judge temporarily froze $57.6 million in USDC linked to Davis and his partners as part of a class-action lawsuit. Although the freeze was lifted in August after the court determined victims could still recover losses, investigators continue to track wallet behavior closely.
Shift Toward Altcoins Amid Market Turbulence
Onchain analysts say the latest wallet movements reinforce a pattern of ongoing liquidity siphoning, even as regulatory pressure mounts. Data also shows these wallets previously launched other insider-heavy tokens — including MELANIA and WOLF — both of which collapsed shortly after release due to concentrated supply.
“Seeing these wallets rotate tens of millions into major altcoins during a correction suggests they are repositioning for longer-term opportunities, not exiting the ecosystem.”
A New Phase for the Libra Network of Wallets
While investigations remain active, the data indicates a clear shift: the wallets tied to the Libra scandal are reducing exposure to memecoins and building large positions in well-established networks like Solana. Whether this represents portfolio repositioning or preparation for future legal maneuvers remains a point of debate among analysts.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.