Memecoin launched by wallet tied to alleged government crypto theft plummets 97%
A cryptocurrency wallet allegedly connected to a US government seizure theft created a Solana-based memecoin via Pump.fun, which subsequently plunged 97%, raising concerns about token distribution practices.
A digital wallet that blockchain forensics experts have connected to a purported theft from cryptocurrency holdings under US government control has deployed a memecoin on the Solana blockchain that subsequently experienced a dramatic collapse, intensifying examination of memecoin deployment methodologies and the hazards associated with onchain token allocation.
The cryptocurrency, named John Daghita (LICK), was deployed through the Pump.fun platform and experienced approximately 97% value depreciation during its initial day of market activity, based on blockchain analytics. The digital asset momentarily achieved a market valuation approaching $915,000 before declining to under $25,000 at the moment of publication.
Prior to the price surge, the wallet address that deployed the token executed four purchase transactions, occurring while the coin maintained a market capitalization beneath $21,000, as demonstrated by Pump.fun analytics.
On Friday, blockchain forensics analyst ZachXBT revealed that he had tracked cryptocurrency wallets associated with John Daghita containing cryptocurrency valued at tens of millions of dollars, which are suspected to be connected to digital assets confiscated by the US government throughout 2024 and 2025.
A representative from the US Marshals Service acknowledged to Cointelegraph on Wednesday that an active investigation into this situation is currently underway, though they refused to share additional information.
According to ZachXBT's claims, Daghita, whose father Dean Daghita serves as president of Command Services & Support (CMDSS), had obtained unauthorized entry to cryptocurrency wallets under US government administration.
40% of LICK token was bundled at launch: Bubblemaps
According to blockchain analytics visualization service Bubblemaps, the wallet responsible for deploying LICK controlled 40% of the complete token supply at the moment of launch, representing a degree of centralization frequently regarded as a warning indicator in nascent token deployments.
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.
Bubblemaps
Significant concentration of token supply among a limited number of entities frequently serves as an initial indicator of orchestrated sniping operations or rug pull schemes, in which project insiders extract liquidity or execute coordinated mass liquidations, resulting in catastrophic token price collapse.
Among the most devastating rug pull incidents occurring in 2025, the Wolf of Wall Street-inspired (WOLF) token experienced a 99% collapse in just several hours, eliminating approximately $42 million in market capitalization on March 16.
The cryptocurrency was deployed by Hayden Davis, who co-created the Official Melania Meme (MELANIA) as well as the Libra token, and who controlled 80% of the WOLF token's initial supply distribution at the time of launch.