NewsBTC
4 hours ago
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Libra Wallets Divert $4M to Solana Amid Fraud Probes

Libra-linked wallets recently moved approximately $4 million from a struggling memecoin, redirecting some of these funds into [Solana](https://holder.io/coins/sol/). This shift occurred amidst ongoing fraud investigations and scrutiny related to the token's launch, which had previously seen significant withdrawals affecting investor confidence.

Key Actions

  • Two addresses associated with the Libra project purchased about $61.5 million in SOL at an average price of $135.
  • The wallets initially held around $57 million in [USDC](https://holder.io/coins/usdc/), facilitating the rapid transition to Solana.
  • Blockchain analysts highlighted this activity following a series of transactions that depleted the memecoin's liquidity.

Blockchain Activity

Market Implications

  • The switch from a controversial memecoin to a more established crypto asset like Solana is notable.
  • The Libra token, promoted by Argentine President Javier Milei, faced criticism as losses grew, leading to political and legal inquiries.
  • The trend of politicians endorsing meme tokens has raised concerns about transparency and investor protection.

Political Link

Legal Concerns

  • Questions persist about who controls the wallets and whether authorities can freeze the new SOL holdings.
  • Fraud investigations continue, yet the wallets maintained control long enough to transfer assets across chains.
  • This scenario highlights the need for faster international cooperation in crypto regulation and enforcement.

This incident underscores the risks for investors drawn to tokens after celebrity endorsements or viral trends.