A cryptocurrency wallet linked by onchain investigators to an alleged theft of US government-controlled crypto has launched a Solana memecoin that quickly imploded, intensifying scrutiny of memecoin launch mechanics and early-stage token distribution risks.

The token, John Daghita (LICK), debuted on the memecoin launchpad Pump.fun and lost roughly 97% of its value within its first day of trading, according to onchain data. After briefly climbing to a market capitalization of around $915,000, LICK fell below $25,000.

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Data from Pump.fun shows that the deployer address accumulated the token through four purchases while the market cap was still under $21,000, a pattern that often draws attention in thinly traded launches.

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

Investigators link wallet activity to seized funds probe

Blockchain investigator ZachXBT said he traced wallets connected to the LICK deployer to 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, though officials declined to provide additional details.

ZachXBT alleged that John Daghita, the son of Command Services & Support (CMDSS) president Dean Daghita, may have gained unauthorized access to wallets overseen by the US government. The claims have not been adjudicated, and no formal charges have been announced.

Source: ZachXBT

Token supply concentration raises red flags

Onchain analysis suggests that LICK’s tokenomics were heavily skewed from the outset. According to data visualized by Bubblemaps, the deployer controlled 40% of the total token supply at launch — a level of concentration that many traders view as a warning sign.

Source: Bubblemaps

High supply concentration among a small number of wallets can enable coordinated selling or liquidity withdrawals, often resulting in sharp price collapses once early holders exit. These dynamics have become a recurring issue in the memecoin sector.

Earlier this year, the Wolf of Wall Street-themed WOLF token lost 99% of its value within hours, erasing nearly $42 million in market capitalization. That token was launched by Hayden Davis, a co-creator of the Official Melania Meme (MELANIA) and the Libra token, who controlled roughly 80% of the supply at genesis.

The LICK episode adds to growing concerns that low-friction launchpads and opaque token distributions continue to expose retail traders to outsized risks, particularly when combined with alleged illicit wallet activity.