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 USDC stablecoins, aiding Singapore liquidators of collapsed crypto bridge Multichain in their efforts to obtain U.S. recognition of their case. Judge David S. Jones issued a provisional order requiring Circle, the issuer of USDC, to maintain the freeze, to prevent potential imminent harm if the state court lifted the freeze. This order also halts a parallel class action lawsuit by U.S. investors seeking to control the same funds through litigation against Circle. The New York court's involvement is crucial as it determines whether the Singapore liquidation procedure can be recognized as a ‘foreign main proceeding’ under Chapter 15 of the U.S. Bankruptcy Code, which facilitates cooperation in insolvency cases across borders. Multichain, previously known as Anyswap, was once a significant player in the cross-chain asset bridge sector before its operations were disrupted by substantial asset losses and legal challenges.

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