Solana Treasury firm faces insider trading claims after meme coin launch

A company tied to Solana’s treasury, listed on Nasdaq, now faces claims of insider trading. Hours after unveiling a new meme-based cryptocurrency, one digital wallet grew from $ 4,100 to over $1.1 million. The surge raised scrutiny around early access and information leaks.

Blockchain tracker Lookonchain was the first to flag the suspicious activity via a post on X, pointing to a Solana wallet that bought billions of $DONT tokens shortly before the public launch. Data from Solscan indicates that the wallet later sold part of the position for large profits.

Early buying before the announcement raised insider concerns

A publicly traded Solana treasury firm, DeFi Development Corp., launched an experimental meme token, DisclaimerCoin ($DONT), on the Solana blockchain via the Bonk.fun platform.

Later, the company stated that the purpose of the launch was to assess market response, not to promote a long-term product. Still, the early trading activity drew attention when blockchain records showed unusual purchases ahead of its official statement.

At approximately 8:30 a.m. Eastern Time, news of the $DONT launch spread via an official statement and a post on X. Afterward, the asset circulated more widely among individual investors.

But token activity was detected much earlier than expected, according to on-chain data. Well before any official notice, transactions were already visible. This timing reveals a disconnect: public acknowledgment came after the digital movement began, yet the record indicates presence before disclosure.

A Solana address closing with “8FziB” started acquiring $DNOT shortly after its launch on Bonk.fun – about 25 minutes post-creation, well ahead of any official notice by DeFi Development Corp., which came close to an hour later.

The wallet slowly accumulated tokens during a period when market visibility was limited, and public oversight was absent. Before the token’s public awareness increased its demand, the buyer had already built a large position.

The wallet spent around $4,100 to acquire approximately 29 billion $DONT tokens through several purchases, accounting for nearly 7% of all existing tokens. Once news from the company emerged, attention toward the token climbed quickly; consequently, its market rate rose rapidly, causing the collection’s value to exceed $1 million shortly after its debut.

Blockchain links raised questions as the firm took back and burned the tokens

With attention focused solely on these initial trades, analysts began tracking the sources of funding for buying $DONT ahead of the project’s debut.

Investigations into the blockchain revealed a pattern. There was a flow of funds into the sniper wallet from several Solana addresses with an indirect connection to past operations within the DeFi Development Corporation’s orbit.

Further investigations followed the nature and the intention behind the operations. Analysts began to look at the links that had developed.

Later, crypto analysts posted observations on X. One wallet tied to the initial purchase contained a staking asset linked to DeFi Development Corp. That account also communicated with a Solana validation node operated by the company.

As such, the statements appeared as entries in accessible blocks of data contained in a blockchain. They suggested a past connection to a system affiliated with the organization, but did not affirmatively attribute possession or power to DeFi Development Corp.

DeFi Development Corp. claimed to have conducted an internal review of the token release and the trades made afterward. They pointed to the wallet as an “early sniper,” referring to traders who invest in tokens as soon as they enter the market.

As the organization pointed out, the process also included the leftover $DONT tokens from the wallet and around $200,000 in Solana proceeds through a process called partial sale activity. A 

A total number greater than 17 billion $DONT was destroyed, a fact also confirmed by the organization.

Though DeFi Development Corp. gave no details about recovering the assets, nor confirmed links, formal or otherwise, with the trader, it directed inquiries toward prior published remarks. 

After news of the token destruction emerged, $DONT surged rapidly in value within hours; meanwhile, the corporation’s stock slipped slightly that day and has remained well below levels over the past six months.

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