A Solana-based meme coin launched by a pockets linked to an alleged theft of U.S. government-controlled crypto property has collapsed quickly after a short surge in buying and selling exercise.
The token, John Daghita (LICK), was created on the Pump.enjoyable launchpad and initially drew robust speculative curiosity, pushing its market capitalization to almost $2.3 million inside hours of launch.
On-chain knowledge exhibits the token surged by greater than 13,300% earlier than sharply reversing course.
A screenshot shared by Bubblemaps exhibits that LICK later fell to round $0.0011, shedding over 14% of its worth inside 5 minutes as promoting strain intensified.
Supply: Bubblemaps
Buying and selling knowledge signifies that the deployer pockets gathered tokens early at low valuations, making 4 purchases earlier than the speedy worth rally and subsequent collapse.
Shortly after the sell-off, the token seemed to be deleted from Pump.enjoyable, successfully ending its buying and selling exercise.
Additional scrutiny got here from Bubblemaps, which reported that the deployer of LICK held roughly 40% of the overall token provide at launch.
Such focus is extensively seen by analysts as a warning signal, because it permits insiders to exert outsized management over worth motion and liquidity.
Bubblemaps claimed that the identical particular person tied to the alleged theft managed the deployer pockets and a major share of the availability through the token’s launch part.
The launch attracted consideration after blockchain investigator ZachXBT said the wallet associated with the token deployer was connected to tens of hundreds of thousands of {dollars} in crypto allegedly tied to U.S. government-seized property.
In an X submit on Jan. 23, ZachXBT claimed the person behind the web alias “John Daghita,” also called “Lick,” had displayed management over wallets holding roughly $23 million throughout a recorded dispute with one other actor in a Telegram group.
Public information present that Command Companies & Assist, a Virginia-based agency whose president is Dean Daghita, acquired a U.S. Marshals Service contract in October 2024 to help with the custody and disposal of sure digital property seized by the federal government.
ZachXBT alleged that John Daghita, the president’s son, gained unauthorized entry to wallets linked to these holdings.
The allegations haven’t been examined in courtroom, and no legal expenses have been introduced.
The incident has additionally drawn consideration from policymakers, as Patrick Witt, director of the White Home Crypto Council, mentioned in a submit on X that he was reviewing the claims following ZachXBT’s disclosures.
