{"id":294994,"date":"2025-02-20T21:19:02","date_gmt":"2025-02-20T21:19:02","guid":{"rendered":"https:\/\/newhampshiredigitalnews.com\/index.php\/2025\/02\/20\/how-jupiter-and-meteora-fueled-libras-collapse-on-solana\/"},"modified":"2025-02-20T21:19:02","modified_gmt":"2025-02-20T21:19:02","slug":"how-jupiter-and-meteora-fueled-libras-collapse-on-solana","status":"publish","type":"post","link":"https:\/\/newhampshiredigitalnews.com\/index.php\/2025\/02\/20\/how-jupiter-and-meteora-fueled-libras-collapse-on-solana\/","title":{"rendered":"How Jupiter and Meteora fueled LIBRA\u2019s collapse on Solana"},"content":{"rendered":"


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How did Kelsier, Jupiter, and Meteora allegedly use LIBRA\u2019s liquidity to cash out at the top while everyday traders lost billions in the biggest Solana scandal since FTX?<\/p>\n

A sudden scandal\u00a0<\/h2>\n

On Feb. 14, what should have been just another day in the crypto markets turned into one of Solana\u2019s (SOL<\/a>) biggest scandals since the FTX (FTT<\/a>) collapse<\/a>.<\/p>\n

A newly minted meme coin, LIBRA<\/a>, appeared out of nowhere and was suddenly at the center of a financial storm. Within minutes of its creation, Argentina\u2019s President, Javier Milei, publicly endorsed<\/a> it, triggering a frenzy.<\/p>\n

The price skyrocketed to a multi-billion dollar market cap \u2014 only to collapse just as fast, leaving retail investors wrecked while insiders made off with millions.<\/p>\n

As the dust settled, the scale of the disaster became clear. This wasn\u2019t just another pump-and-dump. It was something far bigger, involving powerful figures in both politics and crypto.<\/p>\n

At the heart of the scandal was Kelsier Ventures<\/a>, led by Hayden Davis, a figure now widely accused of orchestrating liquidity manipulation schemes.<\/p>\n

But Kelsier wasn\u2019t acting alone. The scandal\u2019s reach extended deep into the Solana ecosystem, pulling in two of its most prominent projects \u2014 Meteora and Jupiter (JUP<\/a>).<\/p>\n

Meteora, a major liquidity provider, played a crucial role in facilitating trades that allowed insiders to exit with millions before retail investors could react.<\/p>\n

Meanwhile, Jupiter, Solana\u2019s dominant decentralized exchange, is now facing scrutiny over whether its infrastructure was used for these trades \u2014 and whether insiders within its ecosystem had prior knowledge of the manipulation.<\/p>\n

Was this just another reckless meme coin craze spiraling out of control, or was the entire ecosystem \u2014 Meteora, Jupiter, and Kelsier \u2014 part of a coordinated operation designed to enrich insiders at the public\u2019s expense?<\/p>\n

Let\u2019s dig in.<\/p>\n

The genesis of the LIBRA token<\/h2>\n

The origins of LIBRA are as murky as the scandal itself. Unlike most meme coin launches driven by grassroots hype, this one had the brief but powerful backing of a sitting president.<\/p>\n

On Feb. 14, at exactly 21:38 UTC, the token was minted on the Solana blockchain. Less than 30 minutes later, Argentina\u2019s President, Javier Milei, took to social media to publicly endorse it.<\/p>\n

His post linked to a website \u2014 vivalalibertadproject.com \u2014 a name strikingly similar to his campaign slogan and political party, La Libertad Avanza. Whether this was a calculated scheme or a reckless mistake remains unclear, but the fallout was immediate.<\/p>\n

The moment Milei hit \u201cpost,\u201d chaos erupted. Snipers \u2014 crypto traders who specialize in early entries \u2014 pounced. Within an hour, LIBRA\u2019s price surged to $4.55, pushing its market cap past $4 billion.<\/p>\n

But this wasn\u2019t organic growth. Blockchain analysts later revealed that wallets linked to insiders had already stockpiled massive amounts of LIBRA before the public had a chance.\u00a0<\/p>\n

Then came the crash. Just as fast as it had risen, LIBRA plummeted, nosediving 95% within hours. Retail investors, drawn in by the hype, were left with worthless tokens, while those on the inside had already cashed out, draining<\/a> over $251 million from the ecosystem.<\/p>\n

In total, less than 14% of traders escaped with a profit. The most successful wallet walked away with $6.5 million. The rest were wiped out.<\/p>\n

And then, as abruptly as he had endorsed LIBRA, Milei deleted his post. He now insisted<\/a> he had no real connection to the project, claiming he was merely \u201cspreading the word\u201d about a private venture.<\/p>\n

The political backlash was swift. Argentina\u2019s opposition accused Milei of orchestrating a financial scam, with calls for his impeachment growing louder.<\/p>\n

Former president Cristina Fern\u00e1ndez de Kirchner condemned the incident, stating, \u201cThousands who trusted him lost millions, while a select few made fortunes due to privileged information.\u201d<\/p>\n

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Esta vez el Che Milei no va porque, la verdad, NUNCA EN LA HISTORIA SE VIO ALGO SEMEJANTE.<\/p>\n

De Hayek pasaste a Ponzi y te fuiste al pasto MAL.<\/p>\n

Desde tu cuenta oficial de X promocionaste una criptomoneda privada, creada vaya a saber por qui\u00e9n.<\/p>\n

Inflaste su valor aprovech\u00e1ndote de\u2026<\/p>\n

\u2014 Cristina Kirchner (@CFKArgentina) February 15, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

The Kelsier connection<\/h2>\n

As the dust settled on LIBRA\u2019s spectacular collapse, all eyes turned to Hayden Davis, the self-proclaimed crypto strategist and CEO of Kelsier Ventures. If anyone stood to gain the most from this debacle, it was him.<\/p>\n

Until now, Davis was a relative unknown in the broader crypto space. But within Solana\u2019s meme coin boom, he had carefully positioned himself as a key player \u2014 though not one who inspired confidence.<\/p>\n

With ties to multiple questionable token launches, including MELANIA and M3M3, Davis had built a reputation for orchestrating high-profile, high-volume, and highly rigged pump-and-dump schemes.<\/p>\n

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The founder of DefiTuna returned $30,000 to Kelsier and cut ties<\/p>\n

This happened after Kelsier was exposed for market manipulation with $LIBRA<\/a>, $MELANIA, and M3M3<\/p>\n

Moty also said Meteora\u2019s team, including Ben<\/p>\n

Helped influencers make money while the community lost<\/p>\n

(4\/9) https:\/\/t.co\/jqyfbTMlXD<\/a><\/p>\n

\u2014 StarPlatinum (@StarPlatinumSOL) February 18, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

For LIBRA, Kelsier\u2019s role was crucial. Blockchain data confirmed that wallets linked to Kelsier were among the earliest accumulators of LIBRA tokens, well before Milei\u2019s endorsement.<\/p>\n

These wallets dumped their holdings at the peak, leaving the public scrambling to sell before the crash.<\/p>\n

While Davis denied any direct wrongdoing, his explanations did little to convince skeptics. He admitted to controlling<\/a> over $100 million tied to the project but insisted it wasn\u2019t his. \u201cIt\u2019s Argentina\u2019s,\u201d he said in an interview.<\/p>\n

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Then came another revelation \u2014 Davis had personally introduced Kelsier to Meteora. That\u2019s when things got even more complicated.<\/p>\n

Meteora\u2019s role \u2014 facilitator or accomplice?<\/h2>\n

Meteora had long been a respected name in Solana\u2019s DeFi ecosystem, known for providing liquidity solutions that helped new projects launch smoothly. But when LIBRA collapsed, its deep involvement in the token\u2019s liquidity mechanics became the focus of scrutiny.<\/p>\n

Unlike typical meme coins, where developers provide their own liquidity, Meteora actively managed LIBRA\u2019s liquidity pools. This gave it direct control over the token\u2019s market behavior.<\/p>\n

The first cracks appeared on Feb. 17, when DefiTuna founder Moty Povolotsky publicly confronted Meteora\u2019s co-founder, Ben Chow. He accused Meteora of creating a system that allowed insiders and influencers to cash out at peak prices while leaving retail traders with nothing.<\/p>\n

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I have seen no initiative, no names called out on @hellochow<\/a> or @weremeow<\/a>‘s behalf. It has been an internal secret that there is a massive spiderweb of influencers who are banking millions from the Meteora community enabled by the leadership team of Ben.<\/p>\n

\u2014 Dhirk \ud83e\udda3 (@CavemanDhirk) February 17, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Moreover, allegedly surfaced chats painted an even uglier picture. The liquidity structure of LIBRA resembled that of MELANIA, another token where Meteora had taken a 1% cut from its peak $100 million liquidity pool.<\/p>\n

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Hayden was also involved in M3M3 launches<\/p>\n

Extracting millions<\/p>\n

For $MELANIA, the Meteora team got 1% ($100M peak) for LP pools. <\/p>\n

Hayden tried to cash out through Orca NFT, but it was traced back.<\/p>\n

Ben and the Meteora team were in on it and did nothing.<\/p>\n

(5\/9) pic.twitter.com\/UsXN8QYzvh<\/a><\/p>\n

\u2014 StarPlatinum (@StarPlatinumSOL) February 18, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

In response, Chow has denied any involvement in insider trading. In a Feb. 17 statement, he insisted:<\/p>\n

\u201cMeteora and I personally have never received or managed any tokens on the side, do not receive knowledge or get involved with any off-chain dealings.\u201d<\/p>\n

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There have been questions regarding Meteora and my involvement in $LIBRA<\/a>, so I want to explain our role and share why we work with 3rd parties.<\/p>\n

Meteora and I personally, have never received or managed any tokens on the side, do not receive knowledge or get involved with any\u2026<\/p>\n

\u2014 benchow.sol (@hellochow) February 17, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

However, while rejecting accusations of financial misconduct, Chow admitted that he had personally referred Davis and Kelsier Ventures to other projects, including MELANIA and LIBRA.<\/p>\n

On Feb. 18, Chow announced<\/a> his resignation. According to Meow, co-founder of both Jupiter and Meteora, the decision was made because Chow had shown \u201ca lack of judgment and care\u201d in handling Meteora\u2019s operations.<\/p>\n

Meow defended Chow\u2019s character, stating:<\/p>\n

\u201cBen has been an extremely helpful and kind participant in the ecosystem for a while now, as many people can attest. I ask everyone not to jump to conclusions and be as kind to him as possible as he seeks to clear his name.\u201d<\/p>\n

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Hi, I\u2019m meow from Jupiter, and I also cofounded Meteora.<\/p>\n

Firstly, I\u2019d like to reiterate my confidence that no one at Jupiter or Meteora committed any insider trading or financial wrongdoing, or received any tokens inappropriately.<\/p>\n

Secondly, we are hiring an independent 3rd\u2026<\/p>\n

\u2014 meow (\ud83d\udc31, \ud83d\udc10) (@weremeow) February 18, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

But by this point, the damage to Meteora\u2019s reputation was irreversible.<\/p>\n

Jupiter\u2019s silence raises questions<\/h2>\n

Unlike Meteora, Jupiter didn\u2019t directly manage LIBRA\u2019s liquidity pools. But as the primary venue<\/a> for LIBRA trading, its infrastructure had facilitated much of the market movement.<\/p>\n

Then there was the issue of leadership. Jupiter and Meteora shared a co-founder\u2014Meow. Despite operating as separate entities for over a year, this connection raised concerns.<\/p>\n

If Meteora had insider liquidity mechanics in place, was Jupiter aware? Did anyone at Jupiter use their knowledge of the liquidity setup to gain an unfair advantage?<\/p>\n

Meow broke his silence on Feb. 18, stating:<\/p>\n

\u201cI\u2019d like to reiterate my confidence that no one at Jupiter or Meteora committed any insider trading or financial wrongdoing, or received any tokens inappropriately.\u201d<\/p>\n

He insisted that while Meteora had been running independently, Chow had made serious errors in judgment, which led to his resignation.<\/p>\n

But not everyone was convinced. On Feb. 17, a wallet linked to a Jupiter employee was flagged for making small trades on LIBRA before the crash.<\/p>\n

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The transactions were minor \u2014 ranging from $10 to $250 \u2014 but suggested that someone inside Jupiter may have had early knowledge of the token\u2019s liquidity structure.<\/p>\n

Jupiter\u2019s leadership responded to all the allegations by announcing an independent legal review of the LIBRA controversy. But the firm they selected \u2014 Fenwick & West \u2014 immediately drew criticism.<\/p>\n

Fenwick & West had previously been linked to FTX\u2019s legal dealings, specifically in helping Sam Bankman-Fried blur the lines between FTX and Alameda Research.<\/p>\n

Many in the Solana community saw this as an attempt to control the narrative rather than uncover the truth.<\/p>\n

After backlash, Meow admitted that Jupiter might reconsider its choice of legal counsel. But by then, the damage was already done.<\/p>\n

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Thanks for comments re: fenwick, we will re-evaluate, getting more recommendations.<\/p>\n

\u2014 meow (\ud83d\udc31, \ud83d\udc10) (@weremeow) February 18, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Silence from Solana\u2019s leadership<\/h2>\n

The collapse of LIBRA sent shockwaves through the Solana ecosystem, triggering a sharp sell-off in SOL.<\/p>\n

From its Feb. 14 high of $205, SOL plummeted to a low of $161 by Feb. 18 \u2014 a staggering 21% drop in just four days. As of this writing, it has rebounded to $172.<\/p>\n

Beyond price action, the scandal has raised deeper concerns about Solana\u2019s decentralized finance ecosystem, particularly how certain tokens are launched, verified, and promoted.<\/p>\n

\u201cRadio silence from Solana leadership as their community gets scammed multiple times a day in the Mass Extraction Olympics sponsored by Jupiter, Meteora, and PumpFun,\u201d one user noted, echoing the growing frustration.<\/p>\n

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Radio silence from Solana leadership as their community gets scammed multiple times a day in the Mass Extraction Olympics sponsored by Jupiter, Meteora, and PumpFun<\/p>\n

\u2014 gino.eth \ud83d\udcbd (@GinoTheGhost) February 15, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Jupiter and Meteora have also faced intense scrutiny. \u201cThis team did the Melania and Trump launch, too. Melania was bad, and people lost big, but since nothing was deleted, Jupiter never had to come back to justify,\u201d one trader pointed out. \u201cThis is crime season, and Jupiter etc. are all part of the crime.\u201d<\/p>\n

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so @JupiterExchange<\/a> is saying that trust me bro lol!!
Ben from Meteora was aware of the CA a few minutes prior to launch for verification purposes but did not share it with the Jupiter team until AFTER the information was public.<\/p>\n

this team did Mealina and trump launch too ,\u2026 pic.twitter.com\/XFVDI8nsCi<\/a><\/p>\n

\u2014 CryptoDaku (@CryptoDaku_) February 17, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

\u201cIt\u2019s all unraveling so quickly,\u201d another industry insider remarked. \u201cJupiter owner Meow is the real owner of Meteora. Ben lied about having no involvement with LIBRA and other Kelsier launches and was fired from Meteora. Gotta imagine Solana and its execs knew this the whole time.\u201d<\/p>\n

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It\u2019s all unravelling so quickly. In the past hour we found out that Jupiter owner Meow is the real owner of Meteora. Ben lied about having no involvement with Libra and other Kelsier launches and was fired from Meteora. Gotta imagine Solana and its execs knew this the whole time. pic.twitter.com\/n5F8IC5H3W<\/a><\/p>\n

\u2014 Beanie (@beaniemaxi) February 18, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

The LIBRA fallout extends beyond just these platforms. With the scale of financial movements involved and high-profile figures connected to the launch, questions about potential legal consequences have emerged.<\/p>\n

\u201cAin\u2019t no way these people aren\u2019t going to prison,\u201d one observer commented. \u201cRunning 9-figure scams using heads of state as bait.\u201d However, as of now, no official regulatory action has been announced.<\/p>\n

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Ain\u2019t no way these people aren\u2019t going to prison:<\/p>\n

\u2013 Running 9 figure scams using heads of states as bait <\/p>\n

\u2013 Doxxed & living is LA<\/p>\n

\u2013 Admitting to inside corruption\/collusion<\/p>\n

\u2013 Exchanges involved \u2013 Meteora, Jupiter<\/p>\n

\u2013 LA based streamers & KOLs involved<\/p>\n

pic.twitter.com\/T0V5UEsZOr<\/a> pic.twitter.com\/NWVS8qdSMG<\/a><\/p>\n

\u2014 $trong (@StrongHedge) February 17, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Despite mounting public scrutiny, Solana\u2019s leadership has remained largely silent, offering no formal statement on the controversy.<\/p>\n

So far, crypto.news has been unable to make contact with anyone from Solana, Jupiter, or Meteora regarding their roles in the LIBRA launch or the events that followed.<\/p>\n<\/p><\/div>\n