Solana Treasury Firm Blames Sniper for Suspicious Meme Coin Trades
DeFi Development Corp. (DFDV), a publicly traded Solana treasury firm, launched a meme coin, DisclaimerCoin (DONT), which quickly became embroiled in insider trading allegations. Before the public announcement, a trader (address “8FziB”) purchased $4,000 worth of DONT, ultimately amassing nearly 7% of the 420 billion token supply. After the official public rollout, DONT’s price surged, turning the trader’s holdings into over $1 million; the trader then sold part of the position, realizing more than $200,000 in profit. Blockchain analysis revealed links between the profitable trader's funding wallets and DFDV's own staking and validator accounts, raising suspicions of insider access. Following the allegations and community scrutiny, DFDV stated they had reviewed and identified the “early sniper,” but did not confirm any internal connection. The proceeds and unsold tokens were ultimately returned and burned by DFDV. After the burn, DONT’s market cap surged to $35 million. DFDV did not clarify how they retrieved the funds or detail procedures to prevent future information leaks. DFDV’s stock has slumped 73% over six months.
