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An onchain analysis conducted by the pseudonymous investigator Dethective connected a wallet that acquired the Kanye West-themed token YZY to another group of wallets associated with the LIBRA token, indicating that the same operator reaped tens of millions of dollars via privileged information.
Through a sequence of X posts on Thursday, Dethective disclosed that a YZY acquisition wallet was able to purchase $250,000 worth of tokens at merely $0.20, significantly lower than the price most investors paid. Within moments, the wallet amassed over $1 million in gains, which was subsequently redirected to a treasury wallet.
The same treasury wallet also obtained substantial amounts from wallets linked to LIBRA’s introduction six months prior. Two “Libra acquisition” wallets withdrew a total of $21 million. Altogether, approximately $23 million was taken across the YZY and LIBRA launches, with assets later transferred to Kamino or Binance.
“We can be certain this is an individual with clear insider knowledge,” Dethective remarked. “The evidence is that they did not target any coin other than $YZY and $LIBRA and came prepared with considerable size,” they added.
Related: LIBRA token creator contests class action suit, citing lack of jurisdiction
Nansen, Cyvers verify connection
Onchain analytical platform Nansen and blockchain security company Cyvers also validated the link between the YZY acquisition wallet and the wallets connected to the LIBRA extraction network.
“The YZY launch acquisition wallet does intersect with the LIBRA extraction flow wallets,” Cyvers informed Cointelegraph. “This suggests the same entity (or a closely coordinated group) was involved in both occurrences,” they added.
Meanwhile, Nansen mentioned that they cannot definitively state that it is associated with Hayden Davis, the controversial figure behind the LIBRA token. “It’s also perpetually debatable what the insider information is and if it truly constitutes insider trading.”
Nansen further noted that infamous sniper Naseem, who earned millions on the Official Trump (TRUMP) memecoin, was also among the earliest buyers of YZY using a wallet previously financed with TRUMP profits. While Naseem asserted that the advantage arose from detecting the liquidity pool early, questions linger over whether this is merely astute trading or part of a larger trend in the ongoing “crime season.”
Related: Judge unfreezes $57M in stablecoins tied to Libra token scandal
Kanye West’s YZY token skyrockets to $3 billion
On Thursday, Ye unveiled his YZY token on Solana, which surged to a $3 billion market capitalization within 40 minutes before plummeting to roughly $1.05 billion.
At the time of writing, YZY was trading at about $1, down over 60% from the previous day. The token reached an all-time high of $3.16 approximately 11 hours earlier, according to data from CoinMarketCap.
West proclaimed the token on X, referring to it as part of “A NEW ECONOMY, BUILT ON CHAIN,” with YZY intended to facilitate transactions within his envisioned “YZY MONEY” system.
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