Suspected US seizure theft wallet launches memecoin, crashes 97%

cointelegraph.com 3 h

Security

A cryptocurrency wallet linked by blockchain investigators to an alleged theft from US government-controlled crypto holdings has launched a Solana-based memecoin that later collapsed, renewing scrutiny of memecoin launch practices and onchain token distribution risks.

The token, called John Daghita (LICK), was created on the Pump.fun launchpad and lost about 97% of its value within its first day of trading, according to onchain data. The token briefly reached a market capitalization of roughly $915,000 before falling below $25,000 by the time of writing.

Leading up to the rally, the token deployer address made four acquisitions, while the coin was still trading below the $21,000 market capitalization, Pump.fun data shows.

LICK/SOL, market capitalization, full-time chart. Source: Pump.fun

Blockchain investigator ZachXBT said Friday that he traced wallets connected to John Daghita holding tens of millions of dollars in crypto believed to be tied to assets seized by the US government in 2024 and 2025.

On Wednesday, a spokesperson for the US Marshals Service confirmed to Cointelegraph that the matter is under investigation but declined to provide further details.

ZachXBT claimed Daghita, son of Command Services & Support (CMDSS) president Dean Daghita, had gained unauthorized access to wallets managed by the US government.

Related: Crypto users affected in massive 149M infostealer data dump

Source: ZachXBT

Related: Bubblemaps challenges PEPE’s fair launch, alleges 30% of genesis supply bundled

40% of LICK token was bundled at launch: Bubblemaps

The deployer of the LICK held 40% of the total supply at launch, according to blockchain data visualization platform Bubblemaps, a level of concentration often viewed as a red flag in early-stage token launches.

“John Daghita (@lick), who stole $40M from the US government, just launched $LICK on pumpfun and is live streaming on Telegram. He holds 40% of the supply,” claimed Bubblemaps.

Source: Bubblemaps

High concentration of supply across a few entities is often an early sign of coordinated sniping activity or rug pulls, where insiders remove liquidity or stage a mass sell-off, leading to a token crash.

In one of the most damaging rug pulls of 2025, the Wolf of Wall Street-inspired (WOLF) token crashed 99% within a few hours, wiping out nearly $42 million of market capitalization on March 16.

The token was launched by Hayden Davis, the co-creator of the Official Melania Meme (MELANIA) and the Libra token, who held 80% of the WOLF token’s genesis supply at launch.