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Libra, Melania creator’s ‘Wolf of Wall Street’ memecoin crashes 99%

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The creator of the Libra (LIBRA) token has launched another memecoin with some of the same concerning onchain patterns that pointed to significant insider trading activity ahead of the coin’s 99% collapse.

Hayden Davis, the co-creator of the Official Melania Meme (MELANIA) and the Libra token, has launched a new Solana-based memecoin, with an over 80% insider supply.

Davis launched the Wolf (WOLF) memecoin on March 8, banking on rumors of Jordan Belfort, known as the Wolf of Wall Street, launching his own token.

The token reached a peak $42 million market cap, however, 82% of the WOLF token’s supply was bundled under the same entity, according to a March 15 X post by Bubblemaps, which wrote:

“The bubble map revealed something strange — $WOLF had the same pattern as $HOOD, a token launched by Hayden Davis. Was he behind this one too?”

Source: Bubblemaps

The blockchain analytics platform revealed transfers across 17 different addresses stemming back to address ‘OxcEAe’ owned by Davis.

“He funded these wallets months before $LIBRA and $WOLF launched, moving money through 17 addresses and 2 chains,” Bubblemaps added.

Source: Bubblemaps

The Wolf memecoin lost over 99% of its value within two days, from the peak $42.9 million market capitalization on March 8 at 4:00 a.m. UTC, to just $570,000 at press time, Dexscreener data shows.

WOLF/SOL, market cap, 1-hour chart. Source: Dexscreener

Davies’ latest token launch comes weeks after the Libra token’s collapse where eight insider wallets cashed out $107 million in liquidity, leading to a $4 billion market cap wipeout within hours.

The Libra token turned into a political issue, with Argentinian President Javier Milei risking impeachment after his endorsement of the Libra coin.

Argentine lawyer Gregorio Dalbon has asked for an Interpol Red Notice to be issued for Davis citing a “procedural risk” if Davis remained free as he could have access to vast amounts of money that would allow him to either flee the US or go into hiding.

Related: Milei-endorsed Libra token was ‘open secret’ in memecoin circles — Jupiter

Memecoins are turning into “retail value extraction tools”

Memecoins are turning against crypto’s fundamental ethos of decentralization, becoming increasingly used to exploit retail investors amid the growing number of rug pulls, according to Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum.

“Memecoins have evolved from community-driven social experiments into a chaotic landscape dominated by value extraction from retail investors,” Plotnikova told Cointelegraph, adding:

“Insider rings, pump-and-dump schemes, and sniper groups have replaced the organic, collectible nature of original memecoins, creating an unhealthy playing field.”

Related: TRUMP, DOGE, BONK ETF approvals ‘more likely’ under new SEC leadership

Investors will also need to distinguish between memecoins that can be seen as genuine “collectibles” and “outright fraudulent activities” like rug pulls which are “not only unethical but also clearly illegal, with case law to support enforcement.”

“In my view, these activities should fall firmly within the jurisdiction of law enforcement agencies,” she added.

United States regulators are becoming increasingly aware of the growing memecoin scams.

A New York lawmaker introduced a bill that would establish criminal penalties specifically aimed at preventing cryptocurrency fraud and protecting investors from rug pulls, Cointelegraph reported on March 6.

Under the proposal, new criminal charges would be created for offenses involving “virtual token fraud,” explicitly targeting deceptive practices associated with cryptocurrencies.

Magazine: Caitlyn Jenner memecoin ‘mastermind’s’ celebrity price list leaked

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Crypto users report new scam emails spoofing Coinbase, Gemini

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Crypto users have reported a rise in scam emails made to look like they’re from crypto exchanges Coinbase and Gemini that attempt to get users to set up a new wallet with pre-generated recovery phrases controlled by scammers.

In several examples posted to X, the email claims to be from Coinbase, asking users to transition to self-custodial wallets and providing instructions on downloading the legitimate Coinbase Wallet, giving a deadline of April 1 to make the switch.

Source: Steve Kaczynski

However, it also provides pre-generated recovery phrases. Once users open a new wallet with those phrases and transfer funds, all the assets will be available to the threat actor, who could drain the wallet.

The email mentions a class-action lawsuit against Coinbase alleging it has sold unregistered securities, which has resulted in a court mandating users manage their own wallets.

“Coinbase will operate as a registered broker, allowing purchases, but all assets must move to Coinbase Wallet,” the phony email says.

The US Securities and Exchange Commission dismissed its lawsuit alleging Coinbase was an unregistered broker and selling unregistered securities on Feb. 27.

Coinbase told Cointelegraph it is aware of the scam and pointed to its March 14 post to X, saying, “We will never send you a recovery phrase, and you should never enter a recovery phrase given to you by someone else.” 

Source: Coinbase Support 

Crypto exchange Gemini has also been spoofed with the same recovery phrase email scam, using the same tactics and claiming users need to set up a new wallet because of a recent court decision.

Gemini was being sued by the SEC for allegedly offering unregistered securities through its earn program. The regulator opted to end the legal action on Feb. 26.

Source: Sukesh Tedla

Gemini didn’t immediately respond to Cointelegraph’s request for comment. 

Blockchain security firm CertiK’s annual Web3 security report flagged crypto phishing attacks, which cost users $1 billion across 296 incidents, as the most significant security threat for 2024.

Related: California financial regulator warns of 7 new types of crypto, AI scams

The email scams come as at least three crypto founders have reported foiling an attempt from alleged North Korean hackers to steal sensitive data through fake Zoom calls.

Scammers have been targeting crypto founders by offering a meeting to discuss a partnership opportunity, but once the call starts, they send a message feigning audio issues and a link to a new call that installs malware. 

Magazine: Lazarus Group’s favorite exploit revealed — Crypto hacks analysis

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Coin Market

Crypto platform Debiex must pay $2.5M in CFTC ‘pig butchering’ case

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Crypto platform Debiex has been ordered to pay around $2.5 million after it failed to respond to a US Commodity Futures Trading Commission suit accusing it of being a romance scam ring.

Arizona federal court Judge Douglas Rayes on March 13 granted the CFTC’s earlier motion for summary judgment in its case and ordered Debiex to pay back around $2.26 million it stole from its customers, along with a civil penalty of nearly $221,500.

Judge Rayes said there was no evidence that Debiex’s failure to respond to the CFTC was the result of “excusable neglect.”

The CFTC sued Debiex in January 2024, saying its staff ran a so-called “pig butchering” scam, where they initiated romantic relationships with customers over social media to gain trust to convince them to invest in the platform.

The scheme hooked five victims who deposited around $2.3 million in total onto Debiex, which the purported trading platform stole, the CFTC said.

A highlighted excerpt of Judge Rayes’ order summarizing the CFTC’s case against Debiex, Source: CourtListener

The CFTC also accused Zhāng Chéng Yáng of being a “money mule” for Debiex, whose crypto wallets were used to accept and steal victims’ funds.

Judge Rayes granted a CFTC motion for default judgment against Zhāng on March 12, finding it adequately alleged he controls a crypto wallet with OKX “that received digital assets to which he had no legitimate claim.”

He said OKX was “voluntarily preserving” the crypto in Zhāng’s account and ordered its contents, consisting of $5.70 worth of Tether (USDT) and nearly 63 Ether (ETH) worth around $119,500, to be transferred to an unnamed victim.

The CFTC said in its January 2024 complaint that Debiex’s scheme saw its unknown managers target potential victims through social media to lure them to websites it had created marketing itself as a “Blockchain Network Decentralized perpetual contract trading platform” where users can conduct futures trading and “Mining transactions.”

Related: Four suspects charged in home invasion of streamer Amouranth 

Debiex’s staff would present as females and built a rapport with victims through “continuous and repeated messaging and sharing purported pictures of themselves” while claiming to be “highly successful digital asset commodities traders,” the CFTC said.

Once an account was created and the customers sent over their crypto, the CFTC said Debiex would share “fictitious information” about customer balances, trading positions and profits.

“All of this information was most likely false,” the CFTC said. “The evidence shows that the Customers’ digital assets were simply sent to numerous digital asset wallets in an attempt to obfuscate their destination.”

Magazine: SEC’s U-turn on crypto leaves key questions unanswered 

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Bitcoin landfill man loses appeal, says he has one ‘last legal option’

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A UK man’s bid to obtain a permit to search a landfill for his hard drive — holding private keys to 8,000 Bitcoin — has been rejected by the UK Court of Appeals.

“Appeal request to the Royal Court of Appeal: refused,” Howells said in a March 14 X post.

“The Great British Injustice System strikes again… The state always protects the state,” the early Bitcoin adopter added before revealing his “next stop” would be the European Convention on Human Rights (ECHR).

UK Royal Court of Appeal Judge Christopher Nugee knocked back Howells’ application, stating that there was no “real prospect of success” and there was “no other compelling reason” as to why it should be heard, according to a March 13 filing shared with Cointelegraph.

Source: James Howells

Nugee’s decision follows an earlier dismissal on Jan. 9 from High Court Judge Andrew Keyser, who similarly said there was “no realistic prospect” of Howells’ case succeeding at a full trial.

In a note to Cointelegraph, Howell said his “last legal option” to exhaust is at the ECHR — where he will claim that the UK High Court and UK Court of Appeal breached his right to property and right to a fair trial under Article 1 of Protocol 1 and Article 6 of the ECHR.

“The British establishment want to sweep this under the carpet, and i will not let them. It will not go away — no matter how long it takes!”

The ECHR cannot overrule a UK court decision — however, a verdict in Howells’ favor would call on the UK courts to consider whether its legislation was interpreted in a way that is compatible with the ECHR’s provisions.

In a separate statement shared with Cointelegraph, Howells said he would file a claim to the ECHR in the “coming weeks.”

The court filings follow repeated rejections from the Newport City Council allowing Howells to search through the Docksway landfill — where Howells’ former partner disposed of a bag containing the hard drive at the site in 2013.

Related: Burning quantum-vulnerable BTC is the best option — Jameson Lopp

Howells’ 8,000 Bitcoin (BTC) is worth around $660 million at current prices. While few predicted Bitcoin would reach such heights back then, Howells’ incident illustrates the importance of properly securing self-custodied crypto funds.

Howells also appears to be running out of time, as the Docksway landfill is reportedly set to shut down sometime during the UK’s 2025-2026 financial year, BBC News reported on Feb. 9.

Magazine: Bitcoin vs. the quantum computer threat: Timeline and solutions (2025–2035)

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