- Two Libra-linked wallets moved 58 million dollars in USDC, converting it entirely into Solana’s SOL token.
- Experts suggest converting to SOL shields funds from freezing, unlike stablecoins which authorities can immobilize.
Two cryptocurrency wallets connected to the Libra memecoin project have moved over 58 million dollars in USDC stablecoins. These funds were entirely converted into SOL, the native token of the Solana network. This financial shift occurred just hours before a special Argentine Congressional Commission was scheduled to present its final report on the Libra investigation.
The transactions originated from the wallets identified as “Milei CATA” and “Libra: Team Wallet 1” which had shown no activity for a period of nine months. Blockchain researcher Fernando Molina publicly tracked the movement, noting the full conversion of USDC into SOL.
The acquired SOL was then transferred to another address, known as FKp1t. Molina suggested a primary interpretation for this action: converting the funds into SOL places them beyond the reach of potential freezing orders, as stablecoins like USDC can be frozen by authorities, while SOL generally cannot.
Political Investigation Reaches Its Conclusion Amid New Evidence
The Argentine Congressional Commission investigating Libra is set to release its findings today. Maxi Ferraro, the Commission President, confirmed the report represents the result of months of work involving witness testimony, document collection, and technical analysis.
Ferraro stated the report seeks to identify any political actions or failures that “allowed, facilitated, or failed to prevent the development of this case.”
In a recent development, Commission members met with Prosecutor Carlos Taiano. During this meeting, they delivered evidence that Ferraro described as critical. This information reportedly includes details that could point to indirect payments being made to public officials connected to one of the alleged operations in the case.
The timing of the multi-million dollar wallet activity, coinciding with the report’s release, has intensified scrutiny around the entire situation.
A Precedent of Court Actions and Unfrozen Assets
The Libra token experienced a catastrophic collapse. Its value was erased in hours after eight insider wallets withdrew 107 million dollars from the project’s liquidity pool. The event prompted legal action in the United States, where Judge Jennifer Rochon initially froze 57.6 million dollars in USDC linked to crypto firm Kelsier Ventures and its founders, the Davis brothers.
A lawsuit alleges they misled investors through the Libra token. However, the freeze was later lifted in August. The judge determined that releasing the funds would not cause harm to victims, as the possibility of reimbursement remained.
The creator of Libra, Hayden Davis, has a history of launching volatile memecoins. A previous project, the WOLF token, lost 99% of its value in 48 hours due to an insider allocation exceeding 80%.
The Practical Consequence of Converting Funds to SOL
The decision to move 58 million dollars into SOL has immediate practical implications. USDC, being a centralized stablecoin, can be frozen by its issuer if required by a legal order. SOL, operating on a decentralized network, does not have this same vulnerability.
This conversion effectively shields the funds from being seized by any government or regulatory body through conventional means. Fernando Molina noted this activity might represent the last time this specific pool of money is visible and traceable on a public blockchain.
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