Onchain Analysis Links YZY and LIBRA to $23M Insider Extraction Scheme

Generated by AI AgentCoin World
Friday, Aug 22, 2025 12:40 am ET1min read
SOL
--
Aime RobotAime Summary

- Onchain analyst Dethective uncovered a $23M insider trading scheme involving YZY and LIBRA tokens via "sniper wallets" exploiting pre-trade information.

- Transactions linked to Binance and Kamino exchanges suggest efforts to launder profits, raising concerns about Solana token launch integrity.

- The case highlights vulnerabilities in speculative crypto projects, particularly celebrity-backed memecoins lacking transparency and regulatory safeguards.

- Analysts call for stronger oversight as blockchain forensics increasingly expose market manipulation risks in decentralized finance ecosystems.

A pseudonymous onchain analyst known as Dethective has identified a suspicious pattern involving wallets linked to the YZY token and another undisclosed project called LIBRA. According to the investigation, nearly $23 million was allegedly extracted from both token launches through a network of addresses that appeared to act on non-public information [1]. The analyst connected a "sniper wallet" to insider trading activity, noting that the operator focused exclusively on YZY and LIBRA, amassing large positions ahead of public trading [2].

The transactions were traced to major exchanges such as Binance and Kamino, suggesting that the operator sought to liquidate their holdings or obscure the source of the funds [3]. This has raised concerns about the integrity of token launches on the

Solana
blockchain and the potential for insider abuse during initial distributions [4]. Dethective emphasized that the wallet's behavior—targeting only two specific tokens with prearranged capital—indicates a high level of inside knowledge [5].

The investigation has sparked broader discussions around the role of onchain analysis in uncovering irregularities within the crypto market. Analysts are increasingly using blockchain forensics to trace illicit gains and hold actors accountable [6]. This case, in particular, highlights the vulnerabilities in token launch mechanisms, particularly those lacking robust transparency and oversight [7].

The findings have also drawn attention to the risks associated with memecoins and speculative projects, especially those tied to celebrity endorsements [8]. While no formal legal action has been announced, the onchain evidence has prompted calls for greater regulatory scrutiny and more secure protocols for future token distributions [9]. The affected projects have yet to issue public statements, and the investigation remains open as more data becomes available.

[1] YZY Sniper Wallet Tied to LIBRA Extraction, $23M Pulled (https://cointelegraph.com/news/yzy-libra-sniper-wallets-insider-profits)

[2] Onchain Sleuth Links Kanye West's YZY Token To LIBRA ... (https://financefeeds.com/onchain-sleuth-links-kanye-wests-yzy-token-to-libra-wallets-in-23m-extraction-scheme/)

[3] Market Implications as described in the original content

[4] Real-Time Crypto News Feed | 24/7 Flash News (https://phemex.com/news)

[8] Kanye West Said Memecoins 'Prey On Fans.' Then He ... (https://ground.news/article/whale-burns-712k-on-solana-memecoin-yzy-as-ct-calls-out)