An on-chain investigation conducted by the pseudonymous analyst Dethective has linked a wallet that sniped the Kanye West-themed token YZY to another group of wallets associated with the LIBRA token, indicating that the same operator has siphoned off tens of millions of dollars through insider knowledge.
In a series of X posts on Thursday, Dethective disclosed that a YZY sniper wallet purchased $250,000 worth of tokens at just $0.20, significantly below the rates most traders encountered. Within minutes, the wallet netted over $1 million in profit, which was subsequently transferred to a treasury wallet.
This same treasury wallet had previously received substantial amounts from wallets linked to LIBRA’s launch six months prior. Two “Libra sniper” wallets collectively extracted $21 million. In total, nearly $23 million was drawn from the YZY and LIBRA launches, with funds later redirected to Kamino or Binance.
“We can be confident this is someone with clear inside information,” Dethective stated. “The evidence is that they did not snipe any tokens aside from $YZY and $LIBRA, and they were ready with a significant sum,” they emphasized.
Sleuth links YZY sniper wallet to Libra. Source: Dethective
Related: LIBRA token creator fights class suit, citing lack of jurisdiction
Nansen, Cyvers confirm connection
On-chain analytics platform Nansen and blockchain security firm Cyvers have also corroborated the relationship between the YZY sniper wallet and wallets associated with the LIBRA extraction network.
“The YZY launch sniper wallet overlaps with the LIBRA extraction flow wallets,” Cyvers informed Cointelegraph. “This suggests that the same entity (or a closely coordinated group) participated in both events,” they added.
Meanwhile, Nansen has indicated that they cannot definitively connect this to Hayden Davis, the controversial figure behind the LIBRA token. “There is always debate regarding the nature of insider information and whether it constitutes insider trading,” they noted.
Nansen further pointed out that notorious sniper Naseem, who profited millions from the Official Trump (TRUMP) memecoin, was also among the first to purchase YZY using a wallet previously funded by TRUMP gains. While Naseem argued that his edge came from recognizing the liquidity pool early, uncertainties persist about whether this is merely astute trading or part of a broader trend in the ongoing “crime season.”
Related: Judge unfreezes $57M in stablecoins linked to Libra token scandal
Kanye West’s YZY token soars to $3 billion
On Thursday, Ye unveiled his YZY token on Solana, which skyrocketed to a $3 billion market cap within 40 minutes before declining to around $1.05 billion.
As of this writing, YZY was trading at roughly $1, down over 60% in the last day. The token reached an all-time high of $3.16 about 11 hours earlier, according to data from CoinMarketCap.
Ye announces YZY token. Source: Kanye West
West declared the token on X, describing it as part of “A NEW ECONOMY, BUILT ON CHAIN,” with YZY aimed at facilitating transactions within his proposed “YZY MONEY” system.
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