Wallets linked to the failed meme currency Libra (LIBRA) are still moving funds across blockchains despite multiple asset freezes, ongoing fraud investigations, and growing legal pressure in both the United States and Argentina.
New on-chain data shows that insiders linked to the project withdrew millions from the crashed token and rotated the profits to Solana during the recent market correction.
New Wallet Moves Renew Scrutiny as Libra Insiders Redirect Millions to Solana
According to blockchain analytics platforms Onchain Lens and Nansen, two wallets identified as “Defcy,” tagged as Libra Deployer, and “61yKS,” tagged as “Libra: Wallet,” removed nearly $4 million in liquidity from the LIBRA ecosystem before deploying the funds to Solana.
The data shows that the Libra Deployer wallet held an additional $13 million in USDC before the move, while the “61yKS” wallet controlled approximately $44 million in USDC on Monday.
The wallet’s continued activity has raised new questions about how much control the researchers have over the project’s remaining funds.
During the LIBRA collapse earlier this year, at least eight internal wallets cashed in approximately $107 million in liquidity, contributing to a rapid market cap wipeout of $4 billion in a matter of hours.
The project’s dramatic rise and fall were accelerated by the endorsement of Argentine President Javier Milei, whose public selfie with founder Hayden Davis helped propel the token to a peak valuation of $4.5 billion before it fell more than 94%.
The fallout has since triggered investigations in multiple jurisdictions. In the United States, a federal judge froze $57.6 million in USDC in May as part of a class-action lawsuit accusing Kelsier Ventures and its three co-founders, Gideon, Thomas and Hayden Davis, of misleading investors.
Judge Jennifer Rochon subsequently unfroze the funds in August and ruled that investors would not suffer irreparable harm because the money was still recoverable.
Even with the freeze being lifted, wallet movements suggest that parts of the project’s liquidity are still moving into new assets, and insiders are now moving from memecoin implementations to larger-cap altcoins like Solana.
Federal judge freezes assets in Argentina as Libra insider trading scandal deepens
Meanwhile, Argentina’s investigation into the scandal has intensified.
On November 11, federal judge Marcelo Martínez de Giorgi ordered the freezing of more than $507,000 in assets linked to Davis and two regional crypto operators, Favio Camilo Rodríguez Blanco and Orlando Rodolfo Mellino.
Argentina freezes $507 thousand in $Pound Meme coin box connected to the president @JMileisuspecting indirect payments to officials. #Pound #Argentina #memecoin
https://t.co/T7aFM5svOP– Criptonoticias.com (@cryptonews) November 11, 2025
Prosecutors estimate investor losses linked to the case range between $100 million and $120 million.
Authorities allege that the trio worked alongside lobbyists Mauricio Novelli and Manuel Terrones Godoy to convert cryptocurrencies into fiat money for Davis and other experts, forming the so-called “financial den.”
Court documents show that multiple transactions linked to the group were traced to Arbitrum, Avalanche and Solana, pointing to what analysts believe was a coordinated internal scheme.
One transfer flagged by investigators involved $507,500 sent through the Bitget exchange just 42 minutes after Milei posted her selfie with Davis.
Prosecutors say the transaction may represent indirect payments to public officials funneled through intermediaries to conceal the origin of the funds.
The scandal has had political consequences in Argentina, even though the country’s anti-corruption body later cleared Milei of any wrongdoing.
Argentina has ruled that the President @JMilei did not violate public ethics laws when it endorsed the LIBRA memecoin earlier this year.#Pound #Argentinahttps://t.co/Eqhg9fdMI5 – Criptonoticias.com (@cryptonews) June 9, 2025
Zuban Córdoba polls showed his approval rating fell from 47.3% in November to 41.6% in March.
Despite the drop in public sentiment, Milei’s pro-cryptocurrency party, La Libertad Avanza, posted a strong showing in the midterm elections, taking over 40% of the national vote and winning key regions, including the province of Buenos Aires.
Analysts note that the ongoing transfers, combined with past internal behavior around MELANIA and WOLF memecoins, fit a broader pattern of rapid token launches, leveraged hype, and rapid liquidity extraction.
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