Same Wallet Sniped YZY and LIBRA, Pocketing $23M in Hours

A pseudonymous onchain analyst known as Dethective has linked a wallet that sniped the YZY token, associated with rapper Kanye West, to another set of wallets tied to the LIBRA token, suggesting that the same operator may have exploited insider knowledge to extract over $23 million across both token launches. According to the analysis, a YZY sniper wallet secured $250,000 in tokens at $0.20, significantly below the price paid by most traders, and quickly converted that into over $1 million in profit. This treasury wallet also received substantial inflows from wallets associated with the LIBRA token’s launch six months earlier, with two "Libra sniper" wallets reportedly extracting $21 million. The combined total of over $23 million was later moved to platforms such as Kamino and Binance, according to the onchain investigator [1].

The connection between the YZY and LIBRA wallets was corroborated by onchain analytics platforms like Nansen and blockchain security firm Cyvers. Cyvers confirmed that the YZY sniper wallet overlaps with those used in the LIBRA extraction, indicating the same actor or a closely coordinated group was likely involved in both events. Nansen, while unable to definitively tie the activity to Hayden Davis, the figure behind LIBRA, acknowledged the possibility of insider information being used. Nansen also noted that notable snipers like Naseem, who profited from the TRUMP memecoin, were among the first to buy YZY using funds previously earned from other token sniping activities [1].

The YZY token, launched by Kanye West (Ye) on Solana, initially surged to a $3 billion market cap within 40 minutes. However, the token’s value subsequently declined, with it trading at roughly $1 at the time of reporting—a drop of over 60% in 24 hours. The token hit an all-time high of $3.16 earlier in the day, according to CoinMarketCap. West described YZY as part of a “new economy built on chain,” designed to power transactions within his proposed “YZY MONEY” financial system. However, concerns over insider trading and the concentration of token ownership have emerged, with onchain data indicating that 94% of the supply was held by insiders, including a multisig wallet controlling 87% before distribution [2].

The launch raised red flags due to the liquidity structure of the token. According to Lookonchain, the developers could manipulate the liquidity pool to sell tokens at their discretion. One user reportedly lost $710,000 after mistakenly purchasing the wrong token but later recouped the loss by buying the correct one. Another user secured $3.4 million in profit by paying $24,000 in priority fees to fast-track their transaction on the Solana network. At the peak of its value, one early buyer was sitting on a $6 million profit [2].

Despite the controversy, several prominent traders and crypto personalities have expressed interest in YZY. Leverage trader James Wynn cited the token’s liquidity and volume as attractive features, comparing it to the TRUMP memecoin, which saw a 4x return in 28 hours. BitMEX co-founder Arthur Hayes was also reported to have bought into the token, suggesting a level of confidence among crypto whales. The token’s mixed reception mirrors broader trends in celebrity-backed memecoins, where high volatility and speculative trading dominate. The recent volatility around YZY echoes previous incidents involving tokens like LIBRA and TRUMP, highlighting the ongoing debate over regulation and transparency in the space [2].

Source: [1] YZY Sniper Wallet Tied to LIBRA Extraction, $23M Pulled (https://cointelegraph.com/news/yzy-libra-sniper-wallets-insider-profits) [2] Kanye West YZY memecoin hits $3B, but falls after insider ... (https://cointelegraph.com/news/kanye-west-memecoin-pumps-3b-launch-then-falls-amid-insider-concerns) [3] Multiply (https://app.kamino.finance/multiply)