27-2-2025 – Blockchain analytics firm Lookonchain has today exposed what appears to be a deliberate fund laundering operation connected to the LIBRA and MELANIA memecoins.
Forensic blockchain analysis has uncovered a peculiar transaction pattern whereby insiders allegedly deployed 2.76 million in Solana (SOL) to acquire POPE tokens, only to subsequently liquidate these holdings for a mere 24,000—willingly accepting a staggering 2.73 million loss. This seemingly irrational financial behaviour has raised serious questions about potential money laundering activities amidst the broader controversy.
This revelation emerges as Argentine newspaper La Nación reports that the United States Department of Justice has initiated a formal investigation into the creation and spectacular collapse of the LIBRA token. The inquiry centres on potential economic crimes, including allegations of systematic fraud and market manipulation, following a formal criminal complaint lodged with American authorities by an Argentine legal practice.
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 widening scandal has now ensnared Argentine President Javier Milei, whose public endorsement of LIBRA on social media platforms directly preceded the token’s meteoric price surge and subsequent devastating collapse. Investigators are examining whether this presidential promotion constituted improper market influence or potential foreknowledge of market movements.
The probe extends beyond political figures to include LIBRA founders Hayden Davis and Julian Peh, alongside associates Mauricio Novelli, Manuel Terrones Godoy, and Sergio Daniel Morales—all facing scrutiny over their roles in the controversial cryptocurrency project.
The MELANIA token—publicly endorsed by former US First Lady Melania Trump and launched on 19th January 2025—experienced a similarly suspicious market trajectory. The Solana blockchain-based token witnessed its market capitalisation rocket to 4 billion within just 30 minutes of its launch, before suffering a catastrophic 90% devaluation from its initial 13.7 price point to approximately 1.4 currently.
The saga took a significant turn on 16th February when investigators exposed what appeared to be a sophisticated network orchestrating market manipulation across both the LIBRA and MELANIA memecoins. This operation allegedly involved influential market participants implementing coordinated insider strategies designed to maximise profits at the expense of ordinary investors.
Just one day later, on 17th February, Argentine President Milei found himself facing formal fraud charges related to the LIBRA memecoin scandal, with prosecutors highlighting the severe financial impact suffered by traders who had invested following his public endorsement.
The LIBRA token had briefly achieved a market capitalisation exceeding 4 billion on 14th February shortly after its launch, before experiencing a catastrophic collapse that has reportedly cost investors between 87 million and 107 million. Investigators allege that project insiders withdrew millions in trading fees and liquidity pool funds shortly before the collapse, raising questions about premeditated market manipulation.
