Dormant cryptocurrency wallets linked to the controversial Libra meme token have become active after months of inactivity, using stablecoin reserves to purchase large amounts of Solana (SOL) during recent market downturns. The transactions have reignited controversy surrounding the project, which collapsed and wiped out hundreds of millions in investor funds.

On-Chain Activity and Legal Status

According to blockchain analytics firm Nansen, at least two addresses previously associated with the Libra token used their funds to acquire Solana at its lowest price point. One wallet, identified as “Libra Team 1,” moved stablecoins from decentralized exchanges to facilitate the purchases before wrapping the SOL tokens. These wallets were instrumental during the Libra token’s initial price surge and subsequent collapse.

Despite their history, the wallets continue to operate without restrictions. Market experts point out that Circle, the issuer of the USDC stablecoin, has not blacklisted addresses involved in the Libra project, a decision likely influenced by an ongoing class-action lawsuit filed by victims. A U.S. court initially ordered a freeze on tens of millions in stablecoins related to the case but later lifted it.

The Shadow of a $280 Million Collapse

The Libra token gained significant attention after it was publicly endorsed by Argentina’s President Javier Milei. However, the project ultimately imploded, erasing over $280 million in value and affecting nearly 75,000 traders. The collapse was allegedly triggered when eight insider wallets withdrew huge sums of money, causing a rapid and catastrophic market crash.

The token’s developer, Hayden Davis, remains a central figure in the legal fallout. Authorities have requested that Interpol issue a Red Notice for his arrest, with Argentine lawyers arguing his control over substantial financial resources makes him a flight risk. Davis has a history of launching meme tokens that experience brief, intense rallies before a complete market collapse.

Broader Solana Market Sentiment

The activity from the Libra wallets coincides with a broader trend of accumulation by major Solana investors. As the price of SOL dropped, other large holders, or “whales,” also increased their positions, with some moving their tokens from exchanges into secure offline storage. This buying pressure is reflected in the derivatives market, where open interest in Solana futures has surged. The data shows that most investors are holding long positions, anticipating a price recovery, which has forced many short positions into liquidation.