Multiple cryptocurrency wallets that used to store Libra meme token funds have resumed operations after several months of inactivity to buy Solana using stablecoins during market downturns, according to blockchain tracking data.
Summary
- Multiple wallets that were previously inactive after the collapse of the Libra meme token have started buying Solana using stablecoins during market downturns.
- The wallets, which were tied to a failed token project endorsed by Milei, are under scrutiny due to their association with the token’s rug pull and ongoing legal issues.
- Major investors bought large amounts of Solana, leading to significant market movement and changes in investor sentiment.
The two Libra token addresses used their stablecoin reserves to buy Solana (SOL) when the cryptocurrency price reached its lowest point, according to Nansen blockchain analytics. The wallets stayed inactive throughout the entire period after Libra token failed.
The Libra Team 1 wallet extracted stablecoins from decentralized exchanges before using them to buy Solana, which it then wrapped, according to on-chain transaction records.
The wallet managed substantial funds throughout Libra meme token’s price surge and collapse and it remained active when the token experienced its rug pull incident.
The wallets operate without restrictions due to an ongoing class action lawsuit. The USDC stablecoin issuer Circle has not imposed any address restrictions on users who participated in early Libra token activities, according to market experts.
The price drop triggered increased buying activity from major investors who held their Solana holdings. The Solana market saw two separate whale investors who bought large amounts of Solana while their investments remained unprofitable.
A major Solana holder extracted their tokens from an exchange platform before storing them in a secure offline storage facility. The market derivatives showed evidence of changing investor opinions. The Solana futures market saw its open interest numbers surge after the price drop while investors held mostly long positions.
The price movement triggered multiple short positions to either be closed or face liquidation.
Why it matters
The Libra token became popular in 2025 when Argentina’s President Javier Milei publicly endorsed it.
The token eventually collapsed and wiped out over $280 million in value from nearly 75,000 traders.
Eight insider wallets withdrew large sums of funds while simultaneously wiping out a significant portion of the market’s value in a brief period.
Nansen tracked two wallets named Defcy (Libra Deployer) and 61yKS (Libra Wallet), which used their funds to buy millions of dollars worth of Solana.
The Libra Deployer wallet maintained a substantial stablecoin reserve before starting its Solana purchases, according to Nansen analytics. The Kelsier Ventures case created problems with investment fund movements.
A U.S. court issued an initial stablecoin freeze worth tens of millions, but later removed it because victims still had access to compensation. The legal system has requested Interpol to issue a Red Notice for Hayden Davis who stands as the Libra token developer.
The Argentine lawyer argued that Davis should be detained because he controls substantial financial resources. Davis has launched multiple meme tokens, which all experienced brief periods of high value before their complete market collapse.
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