Wallets associated with the controversial Libra (LIBRA) token, which collapsed in a catastrophic “rug pull” event earlier this year, have executed a massive pivot, draining residual liquidity from the failed memecoin and acquiring $61.5 million worth of Solana (SOL). The aggressive rotation into a major Layer-1 blockchain asset comes despite active fraud probes in Argentina and the United States, raising significant questions about the movement of funds linked to the alleged scheme.
According to analysis from blockchain data platform Onchain Lens, two primary wallets connected to the Libra team collectively purchased $61.5 million worth of SOL at an average price of $135. The transactions coincided with the wallets withdrawing nearly $4 million in liquidity from the devalued Libra token. This substantial capital deployment in the Solana ecosystem suggests a strategic shift by the entities behind the token, moving away from insider memecoin launches toward established, high-cap crypto assets during a perceived market dip.
The major Solana acquisition was traced to two specific wallet addresses identified by blockchain intelligence firm Nansen: “Defcy,” labeled as the “Libra Deployer,” and “61yKS,” designated as the “Libra: Wallet.”
- Solana Purchase: Total of $61.5 million in SOL acquired.
- Average Price: $135 per SOL.
- Source of Funds: The transaction involved the draining of approximately $4 million in Libra liquidity, combined with a much larger stash of stablecoins. Before the SOL purchase, the “Libra Deployer” wallet (Defcy) held an additional $13 million in USDC, while the “Libra: Wallet” (61yKS) held a significant $44 million in USDC. These stablecoin holdings were deployed alongside the extracted Libra liquidity to fund the massive Solana trade.
This movement represents a calculated attempt to preserve and potentially grow the remaining value of the project’s insider holdings - estimated to have been sourced from one of the largest memecoin scandals in recent history.
Ongoing Legal and Political Turmoil
The Libra scandal, dubbed "Cryptogate" in Argentina, began in February 2025 after Argentine President Javier Milei briefly and controversially promoted the $LIBRA token on his social media accounts. The promotion, which described the project as a private initiative to fund Argentine small businesses, triggered a massive influx of retail investors.
However, the token's value collapsed by over 85% within hours, wiping out approximately $251 million for over 40,000 retail investors and causing a $4 billion market capitalization wipeout.
- Creator Implicated: The scandal centers on American cryptocurrency marketer Hayden Davis, CEO of Delaware-registered Kelsier Ventures, who was briefly endorsed by President Milei as a blockchain and AI advisor.
- Asset Freeze: In November 2025, an Argentine federal court, under Judge Marcelo Martínez de Giorgi, ordered a sweeping freeze of assets belonging to Davis and two alleged intermediaries, covering digital wallets, bank accounts, and real-estate assets. Prosecutors stated the freeze was critical to prevent the transfer of an estimated $100 million to $120 million in potential fraud proceeds.
- Interpol Request: Argentine lawyer Gregorio Dalbon has formally requested an Interpol Red Notice be issued for Hayden Davis, citing a “procedural risk” and the possibility that Davis could use his vast financial resources to flee the U.S. to avoid prosecution.
US Class-Action Lawsuit and Asset Flux
Simultaneously, Davis, Kelsier Ventures, and his sibling co-founders, Gideon and Thomas Davis, face a class-action lawsuit in the U.S., alleging they misled investors.
- Initial Freeze: In May 2025, U.S. Judge Jennifer Rochon initially froze $57.6 million in USDC stablecoins linked to the defendants.
- Freeze Lifted: However, Judge Rochon lifted the freeze on August 21, 2025, ruling that the defendants had not caused "irreparable" harm, as the funds earmarked for victim restitution remained available. This partial, temporary lifting of an asset freeze may have created a window for the subsequent repositioning of assets seen in the recent Solana purchase.
The individual at the center of the Libra controversy, Hayden Davis, has been linked to a pattern of highly volatile memecoin launches. Before Libra, Davis was a co-creator of the Official Melania Meme (MELANIA) token and the Wolf of Wall Street-themed Wolf (WOLF) memecoin. The WOLF token saw an over 99% crash within two days following its launch with an initial supply heavily concentrated (over 80%) among insiders.
During the Libra token's collapse, on-chain analysis indicated that eight insider wallets collectively cashed out $107 million in liquidity. The latest wallet movements - draining the last $4 million from the collapsed memecoin and consolidating a total of $61.5 million into a blue-chip altcoin like Solana - underscore a strategic shift: a move from aggressively capitalizing on retail FOMO through new, concentrated memecoin projects to preserving and growing substantial capital in a more stable, established crypto asset.
The continued, unhindered ability of these controversial wallets to liquidate and deploy multi-million dollar sums on-chain, even amid cross-continental asset freezes and Interpol requests, highlights the persistent challenges law enforcement and regulators face in tracing and seizing digital assets linked to alleged schemes.
Final thoughts
The decision by the Libra-linked wallets to aggressively buy Solana suggests a belief in the long-term appreciation of the SOL ecosystem, contrasting sharply with the short-term, predatory trading model of the memecoin "rug pull." At an average entry price of $135, the holders are betting on a continued market recovery and the stability of the Solana blockchain as an investment vehicle.
The transparency of the blockchain, which allows firms like Nansen and Onchain Lens to publicly track these movements, provides a real-time, albeit delayed, record of the financial decisions made by the wallets at the center of the fraud allegations.
While the funds remain highly visible on the public ledger, their continued use in open market transactions presents a complex enforcement challenge, balancing the pursuit of criminal action with the fluidity of decentralized finance (DeFi).