A cryptocurrency wallet allegedly linked to the theft of US government-seized digital assets has launched a Solana memecoin that rapidly collapsed, reigniting concerns around memecoin tokenomics, insider activity, and onchain transparency.
The token, named John Daghita (LICK), was created on the Pump.fun launchpad and saw a dramatic rise and fall within its first 24 hours of trading. After briefly reaching a market capitalization of approximately $915,000, the token plunged nearly 97%, dropping below $25,000, according to onchain data.
Before the sharp rally, blockchain data shows the deployer address made four early purchases while the token’s market capitalization remained under $21,000, a pattern often associated with insider accumulation prior to retail entry.
Alleged Link to US Government-Seized Crypto Under Investigation
Blockchain investigator ZachXBT reported that wallets connected to the LICK deployer hold tens of millions of dollars in crypto believed to be tied to assets seized by the US government in 2024 and 2025.
According to ZachXBT, the wallets may be associated with John Daghita, the son of Dean Daghita, president of Command Services & Support (CMDSS). The investigator alleged that Daghita may have gained unauthorized access to wallets managed by US authorities.
The US Marshals Service confirmed on Wednesday that the situation is currently under investigation, though officials declined to share additional details.
The launch and collapse of the token have drawn heightened scrutiny due to the seriousness of the alleged wallet origins, combined with suspicious onchain behavior during the token’s early trading phase.
Tokenomics Red Flags as 40% of Supply Bundled at Launch
Blockchain analytics platform Bubblemaps revealed that the LICK token deployer controlled 40% of the total supply at launch, a concentration widely considered a major red flag in early-stage memecoin launches.
High supply concentration increases the risk of coordinated sell-offs, insider dumping, or rug pulls, where liquidity is suddenly removed, causing rapid price collapses. Bubblemaps publicly warned that such distribution patterns often indicate sniping activity or insider manipulation.
The LICK incident follows a broader trend of controversial memecoin launches in 2025. One of the most notable examples was the Wolf of Wall Street-inspired (WOLF) token, which crashed 99% within hours, erasing nearly $42 million in market capitalization. That token’s creator reportedly controlled 80% of its genesis supply, further highlighting ongoing risks tied to centralized ownership in memecoin ecosystems.
