Kanye West YZY Token Linked to $23M LIBRA Profits Amid Insider Trading Concerns

A pseudonymous onchain analyst, known as Dethective, has connected a wallet that profited significantly from the launch of Kanye West’s YZY token to a network of wallets previously involved in the LIBRA token controversy, raising concerns over potential insider trading [1]. The analysis reveals that a YZY-linked wallet purchased $250,000 worth of tokens at $0.20 each—far below the market price—and flipped them for over $1 million in profit within minutes [1]. The proceeds were quickly transferred to a treasury wallet.

This same treasury wallet had previously received substantial inflows from two wallets involved in the LIBRA token launch six months earlier. These wallets collectively extracted $21 million during that event, bringing the total extracted from both token launches to approximately $23 million [1]. The funds were later routed through platforms like Kamino and Binance, according to the analysis [1].

Dethective emphasized that the wallet in question had not sniped any other tokens, suggesting that the actor had access to non-public information about both YZY and LIBRA [1]. “We can be sure this is someone with clear inside info,” the analyst wrote, noting that the actor was prepared with a “huge size” ahead of the token launches [1].

The findings were corroborated by onchain analytics firm Nansen and blockchain security company Cyvers, both of which confirmed the overlap between the YZY and LIBRA-related wallets [1]. Cyvers stated that this overlap pointed to either the same actor or a closely coordinated group being involved in both events [1]. Nansen, however, cautioned that while the activity was significant, it remained debatable whether the information used constituted insider knowledge [1].

The pattern of behavior has drawn comparisons to the so-called “crime season” in crypto, a period marked by rapid rug pulls, wash trades, and other exploitative tactics [1]. The notorious trader Naseem, who previously profited from the TRUMP memecoin, also participated in the YZY launch. A wallet used by Naseem had previously been funded with profits from TRUMP [1]. While Naseem claimed his success came from early recognition of liquidity pools, questions persist about the nature of the strategy and whether it reflects skill or privileged information [1].

YZY, launched on Solana, reached a $3 billion market cap within 40 minutes of its debut before retreating to around $1.05 billion. At the time of reporting, the token was trading near $1, down more than 60% from its $3.16 peak earlier in the day [1]. West, who now goes by Ye, described YZY as part of his vision for a “new economy built on chain,” with the token intended to serve as the backbone of a proposed “YZY MONEY” system [1].

The revelations come amid ongoing legal disputes related to the LIBRA token. A judge recently unfroze $57 million in stablecoins linked to the LIBRA scandal, and the token’s creator has also been defending against a class-action lawsuit on jurisdictional grounds [1].

Sources:

[1] Cointelegraph, “YZY, LIBRA Sniper Wallets and Insider Profits,” https://cointelegraph.com/news/yzy-libra-sniper-wallets-insider-profits

[2] FinanceFeeds, “Onchain Sleuth Links Kanye West’s YZY Token to LIBRA Wallets in $23M Extraction Scheme,” https://financefeeds.com/onchain-sleuth-links-kanye-wests-yzy-token-to-libra-wallets-in-23m-extraction-scheme/