LIBRA and MELANIA Insiders Laundered Funds Through a Suspicious Meme Coin Transaction

Today, Lookonchain, a blockchain analytics firm, revealed that LIBRA and MELANIA insiders allegedly laundered funds through a suspicious meme coin transaction.

A blockchain analytics firm, Lookonchain, has unveiled an instance of alleged fund laundering by LIBRA and MELANIA insiders, as reported by Chain News.

The analysis, shared via Twitter on February 26, indicates that a team of insiders focused on the $LIBRA and $MELANIA tokens engaged in suspicious activity.

They reportedly used 19,846 $SOL (roughly $2.76 million) to buy a memecoin known as POPE, which at the time had a market capitalization of less than $150,000. Subsequently, they sold the memecoin for 175 $SOL (about $24,000), incurring a loss of $2.73 million.

The post claims that the $2.73 million was then channeled to other wallets through a "legal" route, while the memecoin project itself seems to have ceased operations.

The post concludes with a question: “What a perfect plan to funnel out funds.”

As shared by La Nación, the US Department of Justice is investigating the creation and collapse of the LIBRA token.

The investigation focuses on potential economic crimes, such as fraud and market manipulation, arising from the creation and collapse of the LIBRA token.

The probe follows a criminal complaint filed by an Argentine law firm, Estudio Bein, with US authorities.

The complaint, seen by La Nación, implicates Argentine President Javier Milei and key figures in the cryptocurrency project.

The investigation began after a sharp rise in LIBRA’s price on May 10 coincided with Milei’s social media endorsement of the token.

The Argentine president, a fervent admirer of Ludwig von Mises, announced on his Twitter account that he was investing in LIBRA, urging his followers to do the same.

The post went viral, garnering over 1.3 million views and significantly boosting LIBRA’s presence online.

Prior to Milei’s endorsement, LIBRA had minimal online presence, with its Telegram group having only 6,000 members. However, following the president’s post, the token’s Telegram group quickly grew to 100,000 members.

Moreover, the analysis of blockchain data by e-mail showed that the vast majority of POPE token buyers were new users to the Solana blockchain, suggesting an influx of users directed by Milei’s recommendation.

The investigation also centers around Hayden Davis and Julian Peh, founders of the cryptocurrency project.

Other individuals named in the complaint include Mauricio Novelli, Manuel Terrones Godoy, and Sergio Daniel Morales.

On February 14, shortly after its launch, LIBRA’s market cap briefly surpassed $4 billion before collapsing, with investor losses estimated at between $87 million and $107 million, according to estimates by blockchain analytics firm Token Terminal and DeFi researcher.

Insiders are alleged to have withdrawn millions in trading fees and liquidity pool funds.