YZY Token Scam Exposed: LIBRA Promoter Made $12M Fast

Key Points

• Hayden Davis made $12M from sniping Kanye West’s YZY token
• Blockchain data confirms his direct involvement in the YZY pump and dump
• Davis is a known promoter of the LIBRA rug pull tied to major scams
• Community outrage grows over repeated fraud with no legal consequences

The crypto world has witnessed another major scandal. Hayden Davis, a known fraudster and one of the key promoters of the infamous LIBRA rug pull, has now been confirmed as a main actor behind the YZY Token pump-and-dump scheme.

New data from Bubblemaps, a blockchain analytics platform, shows that Davis earned nearly $12 million by sniping Kanye West’s meme coin right at launch. This happened just days after a U.S. federal judge unfroze his assets, granting him access to capital he seemingly used to exploit the new meme coin.

The shocking YZY coin launch had previously hit a $3 billion market cap before crashing spectacularly. While many suspected foul play, this is the first time Davis’s direct involvement has been confirmed through on-chain evidence.

BREAKING: Hayden Davis (Kelsier) sniped $YZY and made $12M pic.twitter.com/r5PWWDxu3Q

— Bubblemaps (@bubblemaps) August 25, 2025

Investigators tracked a series of transactions linked to wallets previously associated with Davis. They used CCTP transfers, shared deposits, and transaction timing to prove that he was behind the sniping strategy that drained early investors.

This is not Davis’s first run-in with controversy. He was a public figure in the LIBRA-related insider web that allegedly involved high-profile names, including the Argentine president. Despite this, Davis has continued to profit from shady coin launches, and now, YZY is the latest in that list.

NEW: Hayden Davis, the same person who pump and dumped $LIBRA, made $12 million on Kanye West’s $YZY memecoin, reports @bubblemaps pic.twitter.com/BKYkG20h2t

— BlockNews (@blocknewsdotcom) August 25, 2025

Crime Pays in Crypto, and the Community Knows It

This isn’t just another crypto scam; it’s a symptom of a deeper issue: There are no real consequences for repeat offenders in crypto.

Just last week, Davis gained partial legal relief in the LIBRA case when a judge decided to unfreeze his assets. Days later, he used those same funds to pull off a multi-million-dollar exploit through the YZY Token.

For many in the crypto community, this is infuriating. How can someone facing serious legal issues for fraud be allowed to walk free and pull off yet another massive scam?

The disparity in treatment is especially clear when you compare Davis’s situation with that of Roman Storm, co-founder of Tornado Cash. Storm faces aggressive legal action, while Davis seems untouched despite openly manipulating markets.

New: $12M profit from the $YZY coin was tied to $LIBRA scandal key figure Hayden Davis pic.twitter.com/rTNGIYVB1J

— Rug Radio (@RugRadio) August 25, 2025

Simon Dedic, managing partner at Moonrock Capital, expressed what many are thinking:

“This is so ruthless and criminal that it’s almost fascinating. Sadly, as long as crime is legal in crypto, this won’t be the last.”

Crypto investors, especially in the meme coin space, are growing more skeptical. The vibe-driven, community-led world of meme coins is fun and fast—but without guardrails, it’s also a hunting ground for scammers with insider access and little to lose.

The recent Saros token crash echoed similar patterns of manipulation and rapid collapse. And as long as high-profile manipulators like Hayden Davis continue to operate without fear of consequences, it raises an uncomfortable question: Is this just part of the system now?

YZY Token Fallout May Change Meme Coin Landscape

The YZY Token wasn’t just another meme coin; it was designed to ride on Kanye West’s celebrity hype. But instead of community engagement or innovation, it became a vehicle for blatant manipulation.

What’s concerning is how easy it was for Davis to execute this. Meme coin launches are often chaotic, but Davis used timed wallet interactions and insider-level tactics to outmaneuver everyday investors and drain liquidity.

For many developers and founders, this incident is a wake-up call. If meme coins continue launching without transparency or anti-sniping tools, the sector risks losing its momentum and its credibility.

2025 is already shaping up to be the worst year for crypto scams, and the YZY crash only reinforces that. From high-profile exploits to anonymous rug pulls, the market is under siege. The question is: will regulation or community-led action catch up?

The identity protocol leak on XRPL showed just how vulnerable even foundational blockchain layers can be. Pair that with market-level manipulation like Davis’s actions, and you start to see why confidence is slipping.

Even macroeconomic conditions are starting to weigh in. A recent analysis on the U.S. debt’s crypto impact shows how traditional financial instability is pushing more retail investors into crypto, sometimes into unsafe territory like meme coins.

The fallout from YZY may be the catalyst for deeper change. It raises important questions:

• Should meme coin creators be verified or subject to basic checks?

• Can community-led governance really police this space?

• Is blockchain transparency enough if legal consequences are weak?

The YZY case isn’t the first, but it’s one of the most blatant examples of unchecked fraud. And if the space doesn’t learn from it, it won’t be the last.