• On-chain data detected the movement of about $3.94 million USDC from the Libra liquidity pool.
• This move has raised concerns across the crypto community, especially as the overall market volumes remain low and the prices continue to fall.

Lately, there have been low volumes coming into the crypto market as crypto prices continue to drop and the big investors take a break. Almost all areas of the crypto market, from the big cryptocurrencies to the small memecoins, are currently facing a drop in price. Today, on-chain data recorded the move of about 3.94M USDC from the Libra liquidity pool and due to Libra’s history, this move has raised many eyebrows in the crypto community.

Insider Libra Wallets Move Funds Across Blockchains

According to the report, the memecoin project, Libra, moved money across different blockchains. It is supposed that it was insiders that made the move and withdrew millions of dollars from the collapsed token. Immediately, they moved this money; they moved it into Solana, thereby capitalizing on the recent dip in the crypto market.

Two wallets identified as “Defcy” and “61yKS” played a major role in these movements. The “Defcy” wallet is labeled as the Libra Deployer, while the “61yKS” wallet is labeled as “Libra: Wallet.” Together, these two wallets removed almost $4 million that was locked in liquidity from the Libra ecosystem before sending the funds to Solana.

Also Read: BNB Chain Urges Users to Migrate Funds as Legacy Multi-Sig Wallet Nears Shutdown

Source: Nansen

Data also showed that the Libra Deployer wallet held an additional $13 million in USDC before making the move. At the same time, the “61yKS” wallet was managing around $44 million in USDC earlier this week. Because these wallets are still active, many people are now questioning how much control investigators actually have over the remaining funds locked up in Libra.

Global Investigations and Insider Cashouts Continue

After Libra collapsed in the beginning of this year, there were at least eight insider wallets that cashed out around $107 million in liquidity. It was this and many other suspicious actions that drew the eyes of investigators. But looking back, the withdrawal of these insider wallets caused the token’s market cap to fall by about $4 billion in just a few hours.

After the collapse, different countries started to look into the case. In the United States, a federal judge froze $57.6 million in USDC in May as part of a class-action lawsuit against Kelsier Ventures and its three co-founders: Gideon, Thomas, and Hayden Davis. The three of them were accused of misleading investors. Later in August, the judge, Jennifer Rochon, lifted the freeze and then explained that investors would not suffer permanent damage because the frozen money was still recoverable.

In all, despite the fact that the freeze has been removed, the wallet’s activity shows that parts of the project’s liquidity are still being moved around.

Also Read: Brazil Plans to Tax Crypto Transactions for Cross-Border Payments