Rebecca Cruz Wallets linked to the troubled Libra token have withdrawn $4 million and purchased $61.5 million worth of Solana, signaling a strategic shift amid ongoing investigations and market turbulence.
Libra wallets shift strategy with a $4 million move into Solana
In a surprising turn of events, wallets tied to the embattled Libra token have begun redirecting substantial liquidity into Solana, signaling a new phase for the controversial crypto project. Blockchain data reveals that two key wallets connected to the Libra ecosystem collectively pulled around $4 million in liquidity from the failed memecoin and used the funds to acquire over $61 million worth of Solana.
The Libra token, once touted as an ambitious memecoin backed by political figures such as Argentine President Javier Milei, has been at the center of ongoing fraud probes and legal disputes. Despite these challenges, activity across associated wallet addresses has remained persistent, showing that the project’s insiders continue to maneuver funds into alternative digital assets.
Data from Onchain Lens confirmed that the purchases were made by two major addresses identified by blockchain intelligence firm Nansen as “Defcy” and “61yKS.” The first wallet, tagged as “Libra Deployer,” and the second, “Libra: Wallet,” executed these transactions at an average Solana price of $135, suggesting that the team is capitalizing on the current market dip.
Continued liquidity drains despite legal scrutiny
The Libra token has been under intense regulatory and legal scrutiny since its collapse earlier this year, when insider wallets reportedly drained $107 million in liquidity, triggering a massive selloff and wiping out over $4 billion in market capitalization within hours. Despite the fallout, the wallets continue to exhibit high-volume activity that contradicts ongoing asset freeze orders.
Before the recent transfers, blockchain records indicated that the Libra Deployer wallet held approximately $13 million in USDC, while the secondary wallet maintained a balance of $44 million. The redistribution of these funds into Solana suggests an aggressive repositioning strategy by insiders, possibly to mitigate exposure to the collapsing memecoin sector.
The ongoing fraud investigations stem from allegations that Libra’s core team misled investors through coordinated insider trading and false promotional tactics. U.S. District Judge Jennifer Rochon previously froze $57.6 million in USDC belonging to Kelsier Ventures and its co-founders Gideon, Thomas, and Hayden Davis who were identified as the principal architects of the Libra token.
Legal fallout intensifies around Libra’s founders
The legal battle around Libra continues to unfold on multiple fronts. Argentine lawyer Gregorio Dalbon has filed for an Interpol Red Notice to be issued for Libra creator Hayden Davis, arguing that Davis poses a procedural risk due to his financial access and potential to flee jurisdiction. The case has gained international attention, with regulators watching closely as the investigation extends into the broader network of memecoin ventures linked to the Davis brothers.
Hayden Davis’s track record in the crypto space includes several failed projects, such as the Official Melania Meme (MELANIA) and Wolf of Wall Street-inspired Wolf (WOLF) token. Both ventures were criticized for heavy insider allocations exceeding 80%, which led to rapid crashes and investor losses exceeding 99% within days of launch. These patterns have prompted watchdogs to question whether the ongoing Solana investments are part of another speculative rotation strategy.
Although Judge Rochon later lifted the asset freeze in August, citing that there was no immediate harm to plaintiffs since reimbursement funds were still available, the movement of large sums into Solana has raised eyebrows among market observers. Analysts suggest that this could represent an attempt to diversify holdings before additional regulatory action is imposed.
Solana becomes the new frontier for Libra-linked capital
The timing of the Libra wallets’ Solana purchases aligns with a broader market correction, during which Solana has emerged as a preferred altcoin for high-volume investors. With growing developer activity and renewed institutional interest, Solana continues to solidify its reputation as a scalable blockchain for next-generation decentralized applications.
The inflow of $61.5 million in Solana acquisitions by wallets tied to the Libra token underscores a potential shift from speculative memecoin projects toward established altcoin ecosystems. Analysts speculate that these purchases could signal an effort to rebuild credibility through association with fundamentally stronger assets. However, others warn that such activity could also be part of a laundering mechanism to obscure the origins of funds from the collapsed Libra venture.
The Libra token remains under investigation in multiple jurisdictions for allegations of market manipulation and investor deception. Despite this, on-chain data consistently shows that wallet movements have not slowed down, suggesting that the individuals behind these addresses are leveraging market volatility to reposition their holdings.
As the crypto industry continues to witness increased enforcement actions and investor awareness, the Libra case stands as a cautionary tale of how speculative ventures can rapidly implode and yet persist in reshaping their strategies. The migration of Libra-linked liquidity into Solana highlights both the resilience and the risk appetite that define this volatile sector.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
