TLDR
- Connection discovered between LIBRA and MELANIA meme coin creators through shared wallet patterns
- LIBRA token crashed 95% after hitting $4B market cap, with insiders removing $87M in liquidity
- Argentine President Javier Milei faces fraud charges over LIBRA token endorsement
- Hayden Mark Davis admitted to orchestrating both LIBRA and MELANIA launches in interview
- Dave Portnoy received $5M refund after losing money in LIBRA launch
A blockchain investigation has uncovered direct links between two high-profile cryptocurrency launches that resulted in substantial investor losses.
Analytics platform Bubblemaps, working with investigator Stephen Findeisen, found evidence connecting the teams behind both the LIBRA and MELANIA meme coins through shared wallet patterns and cross-chain transfers.
The investigation tracked a complex web of transactions beginning with a Solana wallet labeled “P5tb4,” which accumulated $2.4 million through early trading of the MELANIA token. These funds were then moved to an Avalanche wallet “0xcEA” that was directly linked to the token’s creator.
This same Avalanche wallet later provided funding to “DEfcyK,” which blockchain explorer Solscan identified as LIBRA’s main creator wallet. The money trail established clear connections between the two projects, which both followed similar patterns of rapid value increase followed by dramatic crashes.
2/ There’s been speculation that MELANIA and LIBRA are tied to the same team, but without solid proof—until now.
After analyzing cross-chain transfers and timing patterns, we’re highly confident this is the case.
— Bubblemaps (@bubblemaps) February 17, 2025
The LIBRA token launch on Friday drew particular attention after receiving an endorsement from Argentine President Javier Milei. The token’s market capitalization quickly rose above $4 billion before crashing 95% when insiders removed $87 million in liquidity from the project.
In a YouTube interview, Hayden Mark Davis, who identified himself as a “launch strategist” for LIBRA developer KIP Protocol, admitted to orchestrating both the LIBRA and MELANIA token launches. Davis claimed that President Milei’s team initially supported LIBRA as a blockchain transparency experiment before withdrawing their backing when problems emerged.
Davis discussed the practice of “project sniping,” where teams front-run their own token launches. He defended this as a protective measure against external traders who might crash prices, though he acknowledged the controversial nature of such actions.
The investigation revealed that the LIBRA team allegedly used three insider wallets to manipulate their token launch. Blockchain data showed that wallet “0xcEAe…06e2” transferred 1.6 million USDC to three Solana wallets shortly before the LIBRA launch. These wallets then acquired 3.77 million LIBRA tokens, which were quickly sold for 8.25 million USDC, generating a $6.65 million profit.
An unexpected revelation from Davis’s interview concerned Barstool Sports founder Dave Portnoy. Davis confirmed that Portnoy received a $5 million refund after losing money in the LIBRA launch, stating that Portnoy “knew about the launch” beforehand.
The fallout from these events has been severe. Argentine lawyers have filed criminal fraud charges against President Milei for his promotion of the LIBRA token. Milei has denied having any advance knowledge of the project and has deleted his social media posts about it.
Davis claimed he now controls approximately $60 million locked in bonding curve liquidity, plus an additional $100 million in a separate account. He described the situation as “a plan gone miserably wrong” rather than a deliberate scheme to defraud investors.
Bubblemaps’ analysis suggests this group may have been responsible for several other token launches, including projects codenamed TRUST, KACY, VIBES, and HOOD, all following similar patterns.
Davis reported receiving death threats due to his involvement in the LIBRA launch. He emphasized that the international nature of the incident and the involvement of a president made the situation particularly complex.
The findings raise questions about the interconnected nature of recent meme coin launches and the role of insider trading in cryptocurrency markets. Both the LIBRA and MELANIA tokens experienced explosive rises in value before their prices collapsed, leaving many retail investors with substantial losses.
Law enforcement and regulatory authorities continue to investigate these incidents. President Milei’s office has not responded to requests for additional comment about the fraud charges or his deleted endorsement of the LIBRA token.
A criminal complaint has been filed against Milei by several Argentine lawyers, including former head of the Argentine Central Bank Claudio Lozano. The legal action focuses on Milei’s role in promoting what quickly became a failed cryptocurrency project.
