Lighter Team Faces Scrutiny Over Alleged $7.18 Million Secret Token Sales
The Lighter (LIT) team faces scrutiny after blockchain analysis revealed coordinated sales totaling $7.18 million following the Token Generation Event.Summary
The Lighter (LIT) token ecosystem is under investigation following blockchain analytics that uncovered coordinated sales amounting to $7.18 million since the Token Generation Event (TGE), raising concerns about insider selling and transparency.
Five interconnected wallets received nearly 10 million LIT tokens (about 4% of circulating supply) after depositing $5 million USDC into Lighter's liquidity protocol (LLP). Analysts suggest this uniform allocation and subsequent offloading of tokens—totaling $7.18 million sold so far—points to a deliberate strategy rather than organic market activity. Blockchain investigator ZachXBT and community members like Henrik have highlighted this as a serious concern, especially given the Lighter team's lack of communication regarding token allocation and vesting schedules.
The controversy is impacting market sentiment, causing the LIT token to drop over 7%. Investors fear further destabilization if the remaining 7 million LIT held by these wallets are also sold.
(Source：BeInCrypto)