The $250 Million Solana Scandal: How Kelsier, Jupiter, and Meteora Allegedly Used LIBRA’s Liquidity to Cash Out at the Top While Everyday Traders Lost Billions

On Feb. 14, what should have been just another day in the crypto markets turned into one of Solana's (SOL) biggest scandals since the FTX (FTT) collapse.

Hayden Davis, the CEO of Kelsier Ventures, is accused of orchestrating liquidity manipulation schemes that allowed insiders to cash out at the top of the LIBRA pump-and-dump.

According to blockchain data, wallets linked to Kelsier were among the earliest accumulators of LIBRA tokens. These wallets dumped their holdings at the peak, leaving the public scrambling to sell before the crash.

While Davis has denied any direct wrongdoing, his explanations have done little to convince skeptics. He admitted to controlling over $100 million tied to the project but insisted it wasn’t his. “It’s Argentina’s,” he said in an interview.

Kelsier's role in the LIBRA launch became even more evident when Davis personally introduced Kelsier to Meteora, a liquidity provider that played a crucial role in facilitating trades that allowed insiders to cash out at the top.

Meteora's deep involvement in the token's liquidity mechanics quickly drew attention as the collapse of LIBRA unfolded.

Unlike typical meme coins, where developers provide their own liquidity, Meteora actively managed LIBRA's liquidity pools, giving it direct control over the token's market behavior.

The first cracks appeared on Feb. 17, when DefiTuna founder Moty Povolotsky publicly confronted Meteora co-founder Ben Chow, accusing Meteora of creating a system that allowed insiders and influencers to cash out at peak prices while leaving retail traders with nothing.

Surfaced chats further alleged that the liquidity structure of LIBRA resembled that of MELANIA, another token where Meteora had taken a 1% cut from its peak $100 million liquidity pool.

In response, Chow denied any involvement in insider trading. In a Feb. 17 statement, he insisted, “Meteora and I personally have never received or managed any tokens on the side, do not receive knowledge or get involved with any off-chain dealings.”

However, while rejecting accusations of financial misconduct, Chow admitted that he had personally referred Davis and Kelsier Ventures to other projects, including MELANIA and LIBRA.

On Feb. 18, Chow announced his resignation from Meteora. According to Meow, co-founder of both Jupiter and Meteora, the decision was made because Chow had shown “a lack of judgment and care” in handling Meteora's operations.

Meow defended Chow's character, stating, “Ben has been an extremely helpful and kind participant in the ecosystem for a while now, as many people can attest. I ask everyone not to jump to conclusions and be as kind to him as possible as he seeks to clear his name.”

Despite Meow's statement and Chow's resignation, the damage to Meteora's reputation was significant. Accusations of insider trading and financial misconduct continued to swirl around the platform.

Unlike Meteora, Jupiter didn't directly manage LIBRA's liquidity pools. But as the primary venue for LIBRA trading, its infrastructure had facilitated much of the market movement.

Then there was the issue of leadership. Jupiter and Meteora shared a co-founder—Meow. Despite operating as separate entities for over a year, this connection raised concerns.

If Meteora had insider liquidity mechanics in place, was Jupiter aware? Did anyone at Jupiter use their knowledge of the liquidity setup to gain an unfair advantage?

Meow broke his silence on Feb. 18, stating, “I’d like to reiterate my confidence that no one at Jupiter or Meteora committed any insider trading or financial wrongdoing, or received any tokens inappropriately.”

He insisted that while Meteora had been running independently, Chow had made serious errors in judgment, which led to his resignation.

But not everyone was convinced. On Feb. 17, a wallet linked to a Jupiter employee was flagged for making small trades on LIBRA before the crash.

The transactions were minor — ranging from $10 to $250 — but suggested that someone inside Jupiter may have had early knowledge of the token’s liquidity structure.

Jupiter's leadership responded to all the allegations by announcing an independent legal review of the LIBRA controversy. But the firm they selected — Fenwick & West — immediately drew criticism.

Fenwick & West had previously been linked to FTX's legal dealings, specifically in helping Sam Bankman-Fried blur the lines between FTX and Alameda Research.

Many in the Solana community saw this as an attempt to control the narrative rather than uncover the truth.

After backlash, Meow admitted that Jupiter might reconsider its choice of legal counsel. But by then, the damage was already done.