The insider team behind $LIBRA and $MELANIA is under scrutiny after what appears to be a $2.73 million fund-laundering scheme.
The $LIBRA and $MELANIA teams reportedly spent 19,846 SOL (worth $2.76 million) to buy a tiny memecoin called POPE, only to sell for 175 SOL ($24K). Instead of a bad trade, this move has funneled funds into other wallets in a way that looks legal on the blockchain.
It seems that the $LIBRA and $MELANIA insider team is laundering funds.
They spent 19,846 $SOL($2.76M) to buy a memecoin(POPE) with a market cap of less than $150K, and sold it for 175 $SOL($24K), losing $2.73M!
That $2.73M was effectively funneled to other wallets in a “legal”… pic.twitter.com/ACDC0EDcjx
— Lookonchain (@lookonchain) February 26, 2025
The $LIBRA Controversy Deepens
This isn’t the first time $LIBRA has been at the center of controversy. Recently, critics accused Argentinian President Javier Milei of promoting $LIBRA. His endorsement sent the token’s price soaring, but it crashed almost immediately.
Now, Javier Milei has posted that he was “not aware of the details of the project.”
He says that after becoming aware of the details, he decided to stop spreading the word and delete the post.$LIBRA just fell to a new low of $200 million in market cap, erasing $4.4 BILLION. pic.twitter.com/TIjQLj16wb
— The Kobeissi Letter (@KobeissiLetter) February 15, 2025
Blockchain researchers found that a small group of wallets linked to $LIBRA’s creator withdrew $99 million worth of tokens. This happened shortly after Milei’s endorsement. It has led to a federal investigation into Milei and the operations behind $LIBRA.
More Shady Links Between $LIBRA and $MELANIA
Bubblemaps investigated blockchain data. Their analysis revealed relationship patterns between the teams behind $LIBRA and $MELANIA. Allegations of fund laundering are emerging.
1/ How $LIBRA was created by the same team behind MELANIA and other short-lived coins
Featuring new onchain evidence
A thread with Coffeezilla 🧵 ↓ pic.twitter.com/gNwj97KapF
— Bubblemaps (@bubblemaps) February 17, 2025
These claims cast serious doubt on the projects’ legitimacy and market transparency. Do memecoins and their developers use these digital tokens for money laundering?
Lessons for Crypto Investors
This case is another reminder of why meme coins can be risky investments. Meme coins can sometimes deliver quick profits. However, they also attract insiders who manipulate prices for their gain. They pump up the value, cash out, and leave investors with heavy losses—often before anyone realizes what’s happening.
🚨BREAKING🚨
RIGGED GAME! MULTIPLE $LIBRA INSIDERS REIMBURSED MILLIONS FOLLOWING DEVESTATING TRADING LOSSES pic.twitter.com/4VKEnew6w8
— Nick O’Neill (@chooserich) February 17, 2025
Research before jumping into a hyped token like $LIBRA or $MELANIA. Who’s behind it? How liquid is it? And most importantly—does the price action look manipulated?
Conclusion
The $LIBRA and $MELANIA scandals are useful examples of the vulnerabilities in crypto projects with unclear backgrounds. The increasing fear pertains to both money laundering activities and insider trading behaviors. These shady practices put investors at risk. Staying cautious and well-informed is more crucial than ever to avoid falling into these traps. The crypto market is full of opportunities, but it is also full of risks. Always DYOR (Do Your Research).
Disclaimer
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