Solana News Update: Crypto Authorities Pursue Shadows While Libra Channels $4M to Solana

Authorities in Argentina and the United States are ramping up their investigation into the defunct Libra

token, after individuals connected to the project from the failed token to acquire (SOL) during ongoing fraud probes. Blockchain analysis has brought these transactions to light, illustrating the difficulties regulators encounter when tracing international crypto flows and reigniting debates about insider transparency in the unpredictable sector.

Libra, which briefly reached a $4.5 billion market cap following public support from Argentine President Javier Milei for founder Hayden Davis in February,

, wiping out $250 million in investments from more than 40,000 individual investors. Since then, Argentine authorities have , Colombian trader Favio Camilo Rodríguez Blanco, and Argentine operator Orlando Rodolfo Mellino—including digital wallets, bank accounts, and properties—to secure evidence for an investigation . Meanwhile, U.S. courts have alternated between stablecoins tied to Davis and his network, highlighting the ongoing legal struggle over asset recovery.

Despite these interventions, blockchain records indicate that two wallets linked to Libra—labeled "Defcy" (the Libra Deployer) and "61yKS" (Libra: Wallet)—

from the token’s ecosystem, converting it into 456,401 at a price of $135 per token. These trades took place during a recent downturn in Solana’s price, suggesting an effort to exploit market swings. " " about the extent of control investigators have over the remaining project assets, according to blockchain analytics company Nansen.

The controversy has heightened political friction in Argentina, where Milei’s government is accused of questionable connections to the scheme. Legal filings allege Davis converted tokens to cash during high-level meetings at Casa Rosada, fueling the "Cryptogate" scandal. Although Argentina’s anti-corruption agency cleared Milei of ethical wrongdoing,

, according to Zuban Córdoba surveys. Nonetheless, Milei’s pro-crypto party, La Libertad Avanza, retained its strength, winning over 40% of the vote in the midterm elections.

Legal proceedings are now unfolding in multiple countries. Judge Marcelo Martínez de Giorgi in Buenos Aires extended asset freezes, while U.S. Judge Jennifer Rochon temporarily released $57.6 million in

after finding no immediate risk to investors. of enforcing cryptocurrency laws in a decentralized, global environment.

Experts point out that the Libra incident is part of a recurring trend in the memecoin world, where hype is used to extract liquidity. Similar strategies have been seen in previous Davis-related tokens such as M3M3, MELANIA, and WOLF. "This isn’t a one-off event but reflects a broader risk in the memecoin arena," a blockchain analyst commented, stressing the importance of tighter regulation for tokens promoted via social media.

As the probe continues, the Libra affair is serving as a proving ground for international enforcement tactics. With more than $13 million in USDC still held in related wallets, authorities must balance the task of recovering assets for victims with the complex political and technical landscape of crypto oversight.

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