"Crypto Scandal: Melania & Libra Memecoins Linked to Money Laundering"
1min read Crypto investigators have raised concerns about potential money laundering involving wallets associated with MELANIA and LIBRA memecoins. Blockchain data shows that these wallets moved large sums of money, with unusual trading patterns suggesting that funds may have been funneled through different wallets to obscure their origins.
In one instance, 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 rapid loss of millions has drawn attention to the risks of politically linked memecoins.
Large transactions for MELANIA and LIBRA showed an immense spike on-chain, with $100,000+ trades surging by 400% and 350%, respectively. The increase in trade volume points to investors shifting their assets in response to suspicions about money laundering. Blockchain company Bubblemaps discovered the same team behind both coins made over $100 million, allegedly earning $6 million from LIBRA.
Memecoins tied to public figures such as US First Lady Melania Trump and Argentine President Javier Milei have sparked scandals before. Many investors have lost money, leading to fraud allegations. These incidents highlight how political affiliations could generate financial gains for investors, but also show how risky these politically charged cryptos can be.
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. However, this is easier said than done.
