TL;DR
- The crypto market is suffering a sharp decline, with Bitcoin losing the $90,000 support.
- Wallets linked to the Libra collapse withdrew $4 million and bought $61.5 million in SOL.
- The creator of Libra, under investigation, shifts his focus from memecoins to altcoin accumulation.
The cryptocurrency market is undergoing a deep correction, with a strong sell-off that dragged Bitcoin below $90,000, marking its lowest level since April. What started as a routine correction has turned into a sharp downtrend fueled by ETF outflows, short positions driven by large whales, and a decrease in liquidity.
Ethereum confirmed a bearish phase by losing its crucial $3,000 support, while BNB slipped below $900. Meanwhile, Solana is flirting with $130. Despite the general bloodbath, assets like XRP and Chainlink have managed to hold firm above their supports.
Amidst this bearish trend, wallets linked to the Libra scandal made bold and unexpected moves. On-chain data reveals that almost $4 million was withdrawn from the failed Libra ecosystem and quickly rotated into Solana.
Two specific wallets, known as “Libra Deployer” (Defcy) and “Libra Wallet” (61yKS), bought a staggering $61.5 million in SOL at an average price of $135. These whales took advantage of Solana’s drop during the market correction. Before the purchases, these wallets were heavily stocked with stablecoins, holding a combined $57 million in USDC ready for deployment.
The Context: A Scandal That Wiped Out $4 Billion
The recent movements of the wallets linked to the Libra scandal come months after one of the biggest memecoin implosions in the crypto ecosystem. The Libra token, controversially backed by Argentine President Javier Milei, collapsed spectacularly when eight internal wallets redeemed $107 million in liquidity, causing a $4 billion market wipeout in just hours.
The consequences led Argentine lawyer Gregorio Dalbon to request an Interpol Red Notice for Libra creator Hayden Davis, citing concerns that his access to large funds could help him evade the ongoing investigations.
The scandal soon reached US courts, where Judge Jennifer Rochon froze $57.6 million in USDC belonging to the venture capital firm Kelsier Ventures and its founders, the Davis brothers. The lawsuit alleged that they had misled investors through the Libra token. Surprisingly, the freeze was lifted in August after the judge concluded that releasing the funds would not harm the victims, as refunds were still possible.
Davis is no stranger to controversy, having previously launched the memecoin MELANIA and the token WOLF, the latter collapsing 99% in two days due to an internal allocation exceeding 80%.
Now, despite the investigations and widespread rejection, the Libra scandal wallets are shifting their focus to Solana, signaling a transition from internal memecoins to aggressive altcoin accumulation during market dips. The industry is closely monitoring the evolution of the scandal.
