A multisignature wallet tied to the controversial LIBRA meme coin has moved $9 million after nine months of complete inactivity.
The sudden activity occurred just as the US justice system was considering freezing related funds to protect the ongoing investigation, which is being overseen in the US Southern District Court.
Inactive LIBRA Wallet Awakens
The wallet, labeled “Milei” on several blockchain monitoring platforms, sent 69,000 SOL—worth roughly $9 million—through a series of opaque addresses.
Blockchain analyst Fernando Molina, who detected the activity, said the path suggests an attempt to obscure the destination of the funds. The wallet had remained untouched since February 15, one day after LIBRA collapsed following its chaotic launch.
The move represents the first known outflow from any multisig wallet linked to the project. Such wallets require at least two signatures, indicating coordinated action.
The timing also coincides with an emergency request filed in Manhattan, where plaintiffs in a class-action lawsuit seek to halt further fund movements before more assets disappear. The request is now before Judge Jennifer Rochon, who is presiding over the case.
Threat of Lost Evidence
Legal counsel from the Burwick Law firm, representing plaintiffs, told the court that they believe the defendants may soon convert their remaining assets into privacy coins that can erase all transaction history.
Court documents warn that critical funds linked to the LIBRA launch could be lost if the conversion occurs. The filing claims the defendants are only steps from destroying evidence.
The plaintiff’s lawyers argued that the concerns were not hypothetical, according to court documents accessed by BeInCrypto.
They pointed to two specific incidents on November 16 and November 18. These events showed that the defendants had already begun using anonymization tools designed to erase the blockchain trail.
Plaintiffs Argue Funds at Risk
According to the legal filing, the first event, held on November 16, served as a clear test run. A wallet linked to the LIBRA team routed funds through the NEAR Intents protocol and then into a shielded Zcash address.
Once inside Zcash’s privacy pool, the money became mathematically untraceable. Plaintiffs described this as a deliberate proof of concept showing that the defendants could make LIBRA proceeds disappear beyond recovery.
Two days later, the activity escalated significantly. On November 18, defendants began converting more than $60 million in USDC tied to LIBRA into roughly 456,000 SOL.
The funds were then consolidated into two newly created “positioning” wallets—a common step used before assets are pushed through privacy systems or cross-chain anonymization routes.
The movement, according to the filing, strongly suggested preparation for a full-scale laundering operation similar to the one conducted on November 16.
The escalating activity has now prompted the court to act urgently. A hearing on the plaintiffs’ request for injunctive relief is scheduled for this Tuesday at 4 p.m. EST.
For investigators and plaintiffs, the coming hearing could determine whether the remaining LIBRA funds stay traceable or disappear for good.
