A multi-signature wallet associated with the controversial LIBRA meme coin has moved $9 million after being completely inactive for nine months.
This sudden activity comes just as the U.S. judicial system was considering freezing related funds to protect an ongoing investigation overseen by the U.S. Southern District Court.
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Inactive LIBRA wallet wakes up
The wallet, labeled “Milei” on several blockchain monitoring platforms, sent 69,000 SOL (worth about $9 million) through a series of opaque addresses.
Fernando Molina, a blockchain analyst who detected the activity, said the route suggests an attempt to obscure the destination of the funds. The wallet had remained untouched since February 15, the day after LIBRA collapsed after its chaotic launch.
This move represents the first known outflow from a multisig wallet linked to the project. Such wallets require at least two signatures indicating coordinated actions.
The timing also coincides with an emergency request filed in Manhattan, where plaintiffs in a class action lawsuit are seeking a halt to further transfers before more assets are lost. The request is now before Judge Jennifer Rochon, who is presiding over the case.
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Threat of evidence loss
Attorneys representing the plaintiffs at Berwick Law Firm told the court they believe the defendants may soon convert their remaining assets into a privacy coin that can erase all transaction history.
Court documents warn that significant funding associated with LIBRA’s launch could be lost if the conversion occurs. In their filings, the defendants claim they are on the verge of destroying evidence.
According to court documents accessed by BeInCrypto, the plaintiff’s attorney argued that the concerns are not hypothetical.
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They pointed to two specific incidents on November 16th and November 18th. These events showed that the defendants had already begun using anonymization tools designed to erase blockchain traces.
Plaintiffs claim their funds are at risk
The first event, held on Nov. 16, served as an apparent test run, according to legal filings. Wallets linked to the LIBRA team routed the funds through the NEAR Intents protocol and sent them to shielded Zcash addresses.
Once in Zcash’s privacy pool, that money is now mathematically untraceable. Plaintiffs described this as a deliberate proof of concept that defendants could cause LIBRA proceeds to disappear irrecoverably.
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Two days later, activity escalated significantly. On November 18, the defendants began converting more than $60 million in USDC tied to LIBRA into approximately 456,000 SOL.
The funds were then consolidated into two newly created “positioning” wallets. This is a common step used before assets are sent to a privacy system or cross-chain anonymization route.
According to the filing, the campaign strongly hinted at preparations for a full-scale cleansing operation similar to the one that took place on November 16th.
The escalating activity is forcing the courts to act with urgency. A hearing on the plaintiffs’ request for injunctive relief is scheduled for this Tuesday at 4:00 pm ET.
For investigators and plaintiffs, upcoming hearings could determine whether remaining LIBRA funds remain traceable or disappear forever.
