Crypto investigators have flagged suspicious transactions linked to wallets associated with MELANIA and LIBRA memecoins. Blockchain data shows that these wallets moved large sums of money, raising concerns about potential money laundering.
Around 19,846 SOL, worth about $2.76 million, was used to purchase the POPE memecoin. However, the tokens were later sold for just 175 SOL, or roughly $24,000.
This unusual trading pattern suggests that funds may have been funneled through different wallets in an attempt to obscure their origins.
Crypto Wash Trading Or Coordinated Dump?
The transaction history raises several questions. Large buys followed by immediate sell-offs at a loss are common signs of wash trading. Some speculate that the wallets were involved in a scheme to move funds discreetly.
US First Lady Melania Trump. Source: The White House/BBC.
Others believe it could have been an orchestrated attempt to offload large amounts of POPE tokens without spooking the market. Whatever the case, the rapid loss of millions has drawn attention to the risks of politically linked memecoins.
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
Dirty Money In Action
Large transactions for MELANIA and LIBRA showed an immense spike on-chain; $100,000+ trades surged by 400% and 350%, respectively. The increase in trade volume points to investors shifting their assets in response to suspicions about money laundering.
Using liquidity withdrawals and sniper trading, blockchain company Bubblemaps discovered the same team behind both coins made over $100 million. The organization also connected itself to pump-and- dump systems including TRUST, VIBES, and Kacy. Allegedly earning $6 million from LIBRA, OxcEA utilized several wallets to cover transactions.
BTCUSD trading at $86,315 on the daily chart: TradingView.com
Political Figures And Meme Coin Controversies
Memecoins tied to public figures such as US First Lady Melania Trump, have sparked scandals before. Argentine President Javier Milei is under scrutiny for promoting LIBRA, which saw a meteoric rise and fall. Many investors lost money, leading to fraud allegations.
Meanwhile, with around 700 copycats on the market, US President Donald Trump’s name has been exploited for several meme tokens. These incidents highlight how political affiliations could generate financial gains for investors. Many of these clone tokens are now worthless, showing how risky these politically charged cryptos can be.
The Need For Caution In The Crypto Market
Meme currencies are notorious for their volatile character. They are easy to manipulate. Linking a coin to a well-known name can draw speculators hoping for fast riches. But as MELANIA and LIBRA wallets show, lack of control makes them easy target for abuse and, yes, fast buck.
Investors in cryptocurrencies should be cautious of coins with unknown backing and look for indications of odd trading behavior. Authorities might also have to tighten rules in order to stop any financial crimes in the crypto field. But, then, that’s easier said than done.
Featured image from Gemini Imagen, chart from TradingView
