Revival of Libra Token Wallets: A New Twist in the Crypto Market
According to blockchain tracking data, several cryptocurrency wallets that previously stored Libra meme token funds have resumed operations after being inactive for several months to buy Solana with stablecoins during market downturns. 
The wallets, which were linked to a failed Milei-backed token project, are under scrutiny due to their connection to the token’s distribution and ongoing legal issues. Large investors purchased large amounts of Solana, causing significant market movements and changes in investor sentiment.
Key Findings
According to Nansen Blockchain Analytics, the two Libra token addresses used their stablecoin reserves to purchase Solana (SOL) when the price of the cryptocurrency bottomed out. After the Libra token failed, wallets remained inactive throughout the period. The Libra Team 1 wallet extracted stablecoins from decentralized exchanges before using them to purchase Solana, which then wrapped them.
The wallet managed significant funds throughout the price rise and fall of the Libra meme token and remained active when the token experienced its rug pull incident. Due to an ongoing class action lawsuit, the wallets function without restrictions. According to market experts, USDC stablecoin issuer Circle has not imposed address restrictions on users who participated in early Libra token activities.
Market Impact
The price drop triggered increased buying activity from large investors holding their Solana holdings. In the Solana market, there were two separate whale investors who purchased large amounts of Solana while their investments remained unprofitable. A major Solana holder extracted his tokens from an exchange platform before storing them in secure offline storage.
The market derivatives showed signs of a change in investor opinion. The Solana futures market saw an increase in open interest numbers following the price drop while investors were mostly holding long positions. The price movement resulted in several short positions either being closed or liquidated.
Background and Context
The Libra token became popular in 2025 when Argentina’s President Javier Milei publicly endorsed it. The token eventually collapsed, wiping out over $280 million in value from nearly 75,000 traders. Eight insider wallets withdrew large amounts of money while wiping out a significant portion of the market value in a short period.
Nansen tracked two wallets called Defcy (Libra Deployer) and 61yKS (Libra Wallet) that used their funds to purchase millions of dollars worth of Solana. According to Nansen Analytics, the Libra Deployer wallet had a significant stablecoin reserve before it began Solana purchases.
A US court initially issued a freeze on stablecoins worth tens of millions of dollars, but later lifted it as victims continued to have access to compensation. The legal system has asked Interpol to issue a Red Notice for Hayden Davis, who serves as a Libra token developer. The Argentine lawyer argued that Davis should be arrested because he had significant financial resources.
For more information on this developing story, visit https://crypto.news/libra-tokens-ghost-wallets-solana-legal-controversy/
