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Crypto analysts have raised alarms over possible money laundering associated with LIBRA and MELANIA meme coins. As per the blockchain data, wallets that have a connection with these tokens moved massive amounts of money and the pattern has been very unusual. That has been enough to spark concerns whether illegal financial activities have been going on.
One of the biggest red flags is that nearly 19,846 SOL ($2.76 million) was used to buy the POPE meme coin, —only to be dumped for just 175 SOL ($24,000) shortly after. This surprising transaction seems to be an attempt to obscure the origin of the fund, a pattern that is very common in wash trading and coordinated dumps.
Experts have come forward with the question of the motive behind these transactions. Buying large amounts of a token and immediately selling is usually a signal of wash trading. This tactic is used to manipulate market prices or launder money. Others suspect the wallets were strategically unloading POPE tokens without triggering market panic.
It seems that the $LIBRA and $MELANIA insider team is laundering funds.
They spent 19,846 $SOL($2.76M) to buy a memecoin(POPE) with a market cap of less than $150K, and sold it for 175 $SOL($24K), losing $2.73M!
That $2.73M was effectively funneled to other wallets in a “legal”… /ACDC0EDcjx
— Lookonchain (@lookonchain) February 26, 2025
Either way, the sudden disappearance of millions has crypto watchdogs digging deeper into politically linked meme coins. Blockchain data shows an explosive spike in large MELANIA and LIBRA transactions, with $100K+ trades surging by 400% and 350%, respectively, as per Bitcoinist.
Investigations from Bubblemaps found that the same group behind these tokens has made over $100 million using shady tactics like liquidity withdrawals and sniper trading.
I think a politician shouldn’t be able to launch a meme coin or promote it. It’s a public figure and things could always go sideways, like $LIBRA did.
After $TRUMP, $MELANIA and $LIBRA, many will think twice before aping. The risk is to high after all those pump and dumps
— Huy Nguyễn (✸,✸)Redio (@huynguyn23) February 28, 2025
One wallet, OxcEA, raked in $6 million from LIBRA by moving funds through multiple wallets to cover its tracks. Meme coins, which are connected to public figures, like Melania Trump, have also attracted scandals earlier. Argentine President Javier Milei faced backlash for promoting LIBRA, which skyrocketed and then crashed, wiping out investors’ funds.
Meanwhile, Donald Trump’s name has been slapped onto 700+ copycat tokens, many of which are now worthless. These cases prove that politically associated meme coins can be an easy money-making machine but also a disaster for unsuspecting investors.
Meme tokens are volatile and easy to manipulate. Tying a coin to a celebrity or political figure draws in speculators hoping for quick profits. However, as seen with MELANIA and LIBRA, they can also be used for shady financial operations. Regulators may need to step in to prevent abuse. However, being strict with crypto laws is easier said than done. Until then, investors should stay careful, research projects with extra caution, and watch for red flags in trading patterns.
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