US Judge Rejects Order Blocking LIBRA Funds’ Crypto Anonymization

US Judge Rejects Motion to Block Anonymization and Conversion of LIBRA-Linked Funds into Privacy Cryptocurrencies

  • A U.S. judge has rejected a request to block millions of LIBRA-linked funds from being anonymized or converted into privacy cryptocurrencies.
  • The legal order was filed by Burwick Law on behalf of victims linked to LIBRA and Argentinian President Javier Milei.
  • Judge Jennifer Rochon ruled that plaintiffs did not prove a risk of “irreparable harm” and noted defendants’ commitment to transaction traceability.
  • A new website called Libra Trust recently launched, claiming to support Argentine companies independently from defendants.
  • Funds linked to LIBRA were moved before the site appeared, raising concerns about transparency and fund handling.

A U.S. judge has denied a motion to prevent the conversion of LIBRA-associated funds into privacy-focused cryptocurrencies and the use of anonymization methods. The order was filed by legal firm Burwick Law, representing victims who suffered losses connected to LIBRA and its promotion by Argentinian President Javier Milei.

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Judge Jennifer Rochon, who oversees the case, stated that the plaintiffs did not sufficiently show the likelihood of “irreparable harm.” She also rejected the request based on the defendants, including Hayden Davis, pledging to document all transactions to ensure traceability.

Shortly before the court hearing, a new website named Libra Trust went live. According to information on the site, Argentine companies can apply for grants to aid their growth. The platform claims it is run independently from Davis and Milei, overseen by a trustee and a protector, with funding applications reviewed by an independent attorney. However, the site did not specify the identities of these entities.

Burwick Law informed Protos that wallets tied to the LIBRA defendants moved funds from the Meteora token-sale pool before the public announcement of any ‘trust’ structure. The firm said, “We notified defense counsel and the court about those transfers. Only after the funds had moved, and days after our notice, did a new website appear claiming that the money would be placed in a trust.”

Furthermore, Blockworks researcher Fernando Molina reported that multisignature wallets related to LIBRA’s launch were emptied of millions of dollars shortly before the hearing. According to Burwick Law, tens of millions in LIBRA-related funds moved during November. Yesterday, the original Viva La Libertad portal—which also promised investments in small Argentine businesses using LIBRA profits—was taken down. Programmer Maximiliano Firtman suggested the shutdown might be deliberate or due to inability to pay for the site’s third-party Hosting service.

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Read more: US Judge drops Hayden Davis freezing order, frees up 500M LIBRA tokens.

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