New York Court Extends Asset Freeze to Aid Singapore's Multichain Liquidation

A New York court has temporarily extended a freeze on three Ethereum wallets containing approximately $63 million in stolen USDC, as it supports Singapore's efforts to liquidate the collapsed crypto project, Multichain. Judge David S. Jones issued the order to prevent any potential harm while the Singapore liquidators seek U.S. recognition of their case. The court's provisional order would retain Circle's freeze on these wallets, preserving the dollar reserves backing the stolen USDC. This ruling also halts a parallel class action by U.S. investors seeking access to the same funds. The case's recognition under U.S. bankruptcy law would allow the Singapore liquidators to recover Multichain's assets with coordinated court oversight. The Multichain platform, which was once a significant crypto bridge, faced turmoil following abnormal asset transfers and the detention of its CEO in early 2023, leading to its operational shutdown. The outcome of this court case will be critical in determining the fate of Multichain's assets in the U.S.

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